Banijay shares rise nearly 6% on All3Media merger deal

Banijay Shares Climb 6% After All3Media Merger Announcement

Banijay and All3Media Merger Details and Market Impact

Share Price Reaction

March 4 - Shares in Banijay Group rose nearly 6% on Wednesday after the French entertainment firm announced a deal late Tuesday to merge its production operations with All3Media, owned by investment firm RedBird IMI.

Merger Overview

The transaction, which is expected to close by fall 2026, aims to establish one of Europe's largest multimedia production groups, managing franchises such as "Peaky Blinders", "Big Brother", "The Traitors", and "MasterChef", as the companies seek to scale their operations against competition from streaming giants.

Key Deal Points

• Both parties will hold 50% of the combined entity, which will retain the Banijay name
• All3Media owner RedBird IMI will roll-over its entire stake in All3Media into the new combined entity

Financial Implications

Analyst Commentary

• "The financial impact would be significant", a Deutsche Bank analyst said in a note

Projected Revenues and EBITDA

• The combined entity is projected to generate pro forma revenues exceeding 4.4 billion euros ($5.1 billion) and an adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of 690 million euros for 2024
• According to Deutsche Bank, the deal would lift Banijay Group's total pro forma revenues for 2024 to 7.4 billion euros, representing a 16% increase, while pushing its adjusted EBITDA up 9% to 1.5 billion euro

($1 = 0.8596 euros)

Reporting Credits

(Reporting by Leo Marchandon in Gdansk; Editing by Matt Scuffham)