Following the confirmation at the end of October that it was likely to take a majority stake in production company Newen, French commercial broadcaster TF1 and FLCP, the holding company of the Newen group, have signed an agreement under which TF1 will acquire a 70 per cent equity interest in FLCP, with the existing shareholders – including the management team – retaining a 30 per cent equity interest.
Performance-related options, exercisable by both TF1 and the existing shareholders, are an integral part of this medium/long-term partnership deal.
This partnership brings together a leading French broadcaster and a successful producer/distributor of audiovisual content with a proven track record in attracting and federating talents. The main objective is to develop French production in foreign markets, especially with major European broadcasters.
By investing extra resources into the research and development of new programmes across all genres and all platforms, including TV and the internet, this partnership will help meet the challenges of developing French production, in France and across Europe.
The tie-up between TF1 and Newen, which will respect the principles of editorial freedom and commercial independence, is also intended to meet the following objectives:
The deal is consistent with the TF1 group’s strategy of positioning itself in content, and as such aims to develop a new line of business operating independently of the Group’s channels.
Newen will seek to maintain close relationships with its existing customers, with the assurance that a pipeline of quality programmes will be maintained over the long term.
The deal will be subject to scrutiny by the relevant authorities over the coming weeks.