France: Vivendi negotiating an alliance of Canal+ and beIN Sports France with beIN Media Group

Vivendi, the parent company of the pay-TV group Canal+, is currently negotiating with beIN Media Group a strategic merger with the pay-TV group beIN Sports France, according to several French media outlets (Libération, Les Echos, Le Monde, AFP), on 28/01/2016. Negotiations began in December 2015, before resuming in January 2016, according to Libération. The outcome, positive or negative, should take place in late February or early March 2016, according to a source close to the matter cited by the AFP.

Two forms of alliance are being considered:

• In the the first method, Vivendi would become the exclusive distributor of beIN Sports channels: to access these, viewers would subscribe to Canal+ or the Canalsat package; this scenario would cost Vivendi €100m per year, according to Liberation.
• The second method, which is thought to be favoured by Vivendi, would see the parent company of Canal+ buy beIN Sports France (valued at €500m according to the investment bank Natixis). The operation would be carried out in the form of beIN Media Group taking interest in the Canal+ company (French…