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Takeover of a pay-TV platform by a rival

Expertise : Competition 

Business challenge

  • TERA Consultants acted as an advisor to a pay-TV platform during its takeover by a rival. The takeover raised significant competition concerns in that it created monopolistic positions (e.g. the right to broadcast football matches).
  • TERA Consultants produced economic analyses for examination of the case by the Competition Council in Phase I and Phase II.

Approac

TERA's approach highlights two main principles:

  • The enlargement of the relevant market, taking into account the dynamic aspect of the competition and the emergence of new market players (TNT, telecommunications operators),
  • Efficiencies gains, enabled by the transaction including procurement programs, create a positive effect on the subsidy to French audio-visual creation.

Benefits and results

The takeover was approved by the Competition Council, subject to commitments that were deemed reasonable by the buyer who did not ask for any renegotiation of the purchase price.