AI, Creators, Scale, IP, Growth

“More scale, more IP, more growth.” And more exposure to the creator economy and “true creative firepower.” That’s how François Riahi, the CEO of Banijay Group, the parent company of French production giant Banijay, the largest independent TV producer (Peaky Blinders, Black Mirror, Big Brother, MasterChef, Survivor), on Wednesday explained the rationale for the producer’s planned merger with U.K. production powerhouse All3Media (The Traitors, Squid Game: The Challenge, Race Across the World, The Tourist, 1917).

The deal with an enterprise value of $8 billion, unveiled late Tuesday Europe time and set to create a production industry juggernaut, will also boost Banijay’s exposure to English-language content, CFO Sophie Kurinckx-Leclerc highlighted during a conference call. She and her CEO emphasized that the combined company will not only be the number one content provider to global streaming platforms, but also the largest English-language production studio outside the U.S.

Management also touted the opportunity for cost synergies on Wednesday’s call. In this context, the CFO pointed to past acquisitions to underline her confidence that cost reductions will be successful. “We demonstrated [this] in the past with Zodiak and also the Endemol integration,” she said. “We have a strong track record on this. We are very confident.”

Riahi expressed his confidence that cost synergies could be reached “in a short time frame.” Where could cost cuts happen? The CEO on Wednesday mentioned plans for “increased coordination across distribution and sales, eliminating duplication and improving commercial efficiency.” He didn’t go into more details for the firms’ sales arms, the Cathy Payne-led Banijay Rights and the Louise Pedersen-led All3Media International. Additional cost savings opportunities lie in “the optimization of central and support functions, and a far more integrated approach to procurement,” Riahi highlighted.

Each company will own a 50 percent stake in the combined firm. Banijay CEO Marco Bassetti will become the CEO of the merged firm. All3Media, owned by the Jeff Zucker and Gerry Cardinale-led venture firm RedBird IMI, is led by CEO Jane Turton. Zucker will serve as chairman of the board of the merged company. The companies expect the deal to close in the fall.

The deal brings together a range of production firms. Banijay’s 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 companies expect cost synergies from the deal to amount to €50 million, or $58 million in today’s currency exchange rate. The firms say that the combined firm would have generated revenues exceeding €4.4 billion and adjusted EBITDA of €690 million in 2024.

RedBird IMI had acquired All3Media in 2024 for $1.45 billion. 

Could more deals be next? “Consolidation is the name of the game,” François Riahi said on Wednesday’s call, describing the just-unveiled All3Media deal as “complementary” and an example of “transformative consolidation.”