European media giant MFE-MediaForEurope, owner of Mediaset and Mediaset España, has secured a €3.4 billion loan to help it fund its continent-wide growth plans, CEO Pier Silvio Berlusconi confirmed in a press conference last night. While market conditions will play a role in deciding whether MFE makes any major moves next year, Berlusconi said he hopes 2025 will be the year in which the company’s international strategy “can shift up a gear”, according to Reuters.
MFE isn’t committed to any particular M&A deals yet. But the broadcaster wanted the funds in order to be able to quickly move as and when any opportunities arrive. “We want to be ready to assess what, if anything, could be the right thing to do in Germany, but also for any other opportunities,” said Berlusconi.
The most likely target is German broadcaster ProSiebenSat.1. MFE has built up a nearly 30 percent stake in the company, stopping just shy of the threshold which would legally mandate it to make a full takeover bid for the firm. MFE has been pushing for more favourable conditions before going after a full acquisition, for example by lobbying for ProSieben to shed some of its non-core business arms (which would make the overall the company more affordable).
MFE filed a motion to this end at a shareholder meeting this year which was ultimately rejected, but ProSieben has since been in the process of selling some of its non-entertainment ventures.
It’s not just the state of ProSieben’s business which MFE is keeping an eye on, however. Berlusconi said the wider German market will also be important. “We are following the situation in Germany, which is very complex, given the weakness of the economy and the political crisis,” he said.
M&A flurry, but will it reach Europe?
MFE has long spoken of the need to create a European media powerhouse, in order to compete more effectively with the international tech and streaming giants. However so far there’s been little in the way of action – Berlusconi clearly hopes that can change next year.
There will be questions over regulatory clearance, especially since TF1’s proposed merger with M6 was effectively blocked by regulators a few years back. The fact that MFE’s existing broadcasters aren’t based in Germany should help on that front, though that’s not a guarantee that any transaction would be cleared.
But the case for European mega-mergers could become stronger next year. Donald Trump’s presidency is expected to create more favourable conditions for major M&A activity in America. The US-based media giants may pursue major mergers themselves in order to strengthen their own hand, while attempts to rein in the tech giants through antitrust moves might be hampered by Trump’s appointed regulators.
