M6 to exit home shopping business

French broadcaster M6 Group is to sell its home shopping business, facilitating consolidation of that sector.

M6 has entered into exclusive negotiations with Stars, the parent company of Teleshopping, with a view to selling the entire share capital of its Home Shopping Service subsidiary.

The RTL Group-owned broadcasters aid that the home shopping business operated in “a competitive environment undergoing profound change”, impacted by the rise of major international e-commerce platforms.

It said that the sale would enable the combination of its subsidiary with the other leading player in the French sector, Teleshopping,  which would help to secure the long-term future of the home shopping business model.

The proposed sale will include an agreement on the broadcast of home shopping programmes on M6 Group’s channels, and an option for the Group to sell its 51% stake in Best of TV, an e-commerce business dedicated to products seen on TV. The company said the latter would benefit from the combination of Home Shopping Service with Stars.

Home Shopping Service is the legal entity that produces M6 Boutique, the home shopping programme on the M6 channel. Home Shopping Service also produces teleshopping formats for other French and foreign broadcasters, as well as infomercials.

Completion of the transaction remains subject to finalisation of the negotiations and to consultation with employee representative bodies.

M6 said that the impact on the group’s financial statements is not expected to be material.