“More scale, more intellectual property, more growth.” And more exposure to the creator economy and “true creative power.” So said François Riahi, CEO of Banijay Group, the parent company of French production giant Banijay, the largest independent television producer (Peaky Blinders, Black mirror, Big brother, Master Chef, Survivor), on Wednesday explained the rationale for the producer’s planned merger with British production company All3Media (Traitors, Squid game: Challenge, Race all over the world, The tourist, 1917).
The deal with an enterprise value of $8 billion, which was unveiled late Tuesday European time and is set to create a juggernaut in the production industry, will also boost Banijay’s exposure to English-language content, CFO Sophie Kurinckx-Leclerc highlighted during a conference call. She and her CEO confirmed that the combined company will not only be the premier content provider for global streaming platforms, but will also be the largest English-language production studio outside the United States.
Management also touted the cost synergy opportunity on Wednesday’s call. In this context, the CFO referred to previous acquisitions to confirm her confidence in the success of cost reduction. “We showed [this] “In the past with Zodiak and also the Endemol integration. “We have a proven track record on that. We are very confident.”
Al-Riahi expressed his confidence in the possibility of achieving cost synergy “in a short time frame.” Where can cost cutting happen? The CEO on Wednesday mentioned plans to “increase coordination across distribution and sales, eliminate duplication and improve business efficiency.” He did not go into further details about the sales arms of the two companies, which are Banjay Right, led by Cathy Payne, and All3Media International, led by Louise Pedersen. Al-Riahi stressed that additional cost-saving opportunities lie in “improving central and support functions, and adopting a more integrated approach to procurement.”
Each company will own a 50 percent stake in the combined company. Banjay CEO Marco Bassetti will become CEO of the combined company. All3Media, owned by Jeff Zucker and Gerry Cardinale’s RedBird IMI, is led by CEO Gene Turton. Zucker will serve as Chairman of the Board of Directors of the combined company. The companies expect the deal to close in the fall.
The deal brings together a group of production companies. Banijay banners include the likes of Kudos, Tiger Aspect and Shine TV. All3Media’s production brands include the likes of Lion Television, Objective Media Group and Silverback Films.
The two companies expect the cost of the deal to reach 50 million euros, or $58 million at today’s currency exchange rate. The combined company would have achieved revenues of more than €4.4 billion and adjusted EBITDA of €690 million in 2024, the companies say.
RedBird IMI acquired All3Media in 2024 for $1.45 billion.
Could more deals be next? “Consolidation is the name of the game,” Francois Riahi said on a call Wednesday, calling the just-revealed All3Media deal “complementary” and an example of a “transformational merger.”
