Germany’s Bertelsmann has approached potential bidders including French media giant Vivendi and Altice Europe about selling its controlling stake in French broadcast group M6, sources close to the matter told Reuters.

Bertelsmann is hoping for a deal potentially worth about 3 billion euros ($3.6 billion) for Metropole Television SA, commonly known as M6 Group and home to France’s biggest private radio station, RTL, two sources said on condition of anonymity.

M6 shares jumped 7.5% in high volume on Friday after Reuters first reported Bertelsmann’s sale plans.

M6 Group’s flagship television channel M6 is France’s most profitable private national channel and part of the second-most watched private TV network after TF1, which is controlled by conglomerate Bouygues.

M6 rival TF1 group and Czech billionaire Daniel Kretinsky have also been approached, the sources said, adding that Bertelsmann had yet to hire banks for any formal sales process and talks remained at a preliminary stage.

Bertelsmann, M6, Vivendi, TF1 and telecoms company Altice declined to comment. Representatives for Kretinsky were not immediately available to comment.

Founded in 1987 and led for the past twenty-one years by its charismatic boss Nicolas Tavernost, M6 is controlled by Bertelsmann via its subsidiary RTL Group.

An RTL Group spokesman also declined to comment, but noted Bertelsmann CEO Thomas Rabe has repeatedly called for industry consolidation in Europe and the creation of national champions in the media sector.

A full sale of RTL Group’s 48% stake in M6 would mark the departure of Bertelsmann from France after it agreed to sell Prisma Media, France’s number one print magazines group, to Vivendi in December.

Bertelsmann has instead sought to strengthen its presence in the United States with the $2.175 billion purchase of publisher Simon & Schuster in November.

In a Financial Times interview last year, Rabe mentioned the benefits of striking partnership deals and said RTL was “open-minded to exploring such possibilities.”

He sees the creation of national TV champions in Europe’s fragmented media market as a way to better compete with U.S. streaming giants like Netflix.

Broadcasters RTL and German competitor ProSiebenSat.1 Media are battling to recover from a hit to advertising revenues caused by the coronavirus pandemic.

($1 = 0.8241 euros)


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