The France Télévisions group has announced that it will divest its interest in SVOD service Salto should the merger of TF1 and M6 Group be completed.
Announced in May 2021, the merger of TF1 and M6 would combine France’s two leading commercial broadcasters in an effort to create a “French streaming champion”. The deal, which has received the backing of employee groups at both companies, now has a probe from the Autorité de la Concurrence looking into its viability.
With streaming central to this new partnership, pubcaster France Télévisions has signed an agreement to sell its 33.33% interest in SVOD Salto for €45 million.
The new group would then own 100% of Salto, with the agreement conditional on completion of the merger. Salto will remain under the joint control of its three shareholders throughout 2022.
Salto, which launched as a three-way JV in late 2020, has reportedly struggled to live up to expectations and is underperforming with only about 500,000 paying subscribers. According to a report published last month, the SVOD is only at around half the number originally predicted for the offering by the end of last year.