A report from investment bank Berenberg on the merger between the media production giants Banijay and All3Media is positive about the plan. “We view the rationale for the merger positively, as it strengthens Banijay’s catalogue and scale,” said the bank’s report. Berenberg is recommending Banijay a ‘BUY’ for its clients and a price target of €13.50 (currently about €8.40).

“The group’s FY 2025 results were broadly in line with consensus and our estimates, although they highlighted ongoing difficulties in Entertainment, while Gaming continues to perform well. Following the announcement of the All3Media deal, which comes after the acquisition of a majority stake in German sports-betting giant Tipico in October 2025, Banijay will host a strategic update on 26 March to unveil the next steps of its strategy. We reiterate our Buy rating and €13.50 price target, which provides ~60 per cent upside,” stated Berenberg.

“In the new entity, Banijay Group and All3Media owner RedBird IMI will hold a 50 per cent stake each, with Banijay retaining managerial control. All3Media is known for IPs such as The Traitors, Squid Game: The Challenge and Call the Midwife. By joining forces, we think Banijay will be able to leverage a broader portfolio of IPs, enhancing its production and distribution capabilities. Also, All3Media’s strong English-language content, which makes up 79 per cent of production sales, should help the new entity strengthen its ties with streamers. Banijay expects €50 million of synergies in 12 months, ~1 per cent of combined revenue, which is broadly in line with the level achieved with the Endemol deal in 2020,” suggested the bank.

The pair will further detail their strategy in two weeks. “In less than a year, Banijay’s profile has changed significantly. We therefore welcome the strategic update scheduled for 26 March. In our view, focus will be on new mid-term growth ambitions, plans for The Independents, the group’s weak liquidity, and whether the rationale for keeping Gaming and Entertainment together has evolved,” added Berenberg.

Banijay Group operates two divisions: 1) Banijay Entertainment, which is the leading European content production and distribution company with hit shows including Peaky Blinders, Black Mirror, Big Brother, MasterChef and Survivor. It also provides live experiences under the Banijay Live sub-segment and recently launched a small Banijay Sports unit focused on ‘sportainment’; and

2) Banijay Gaming, which is one of the most profitable European online betting companies. Benefiting from structural trends in both divisions, as well as higher growth in its more profitable and cash-generative Banijay Gaming division, the company is set to report “7.5 per cent sales and 22 per cent EPS CAGR over 2025-28E, while trading on only 11x P/E for 2026E,” Berenberg explained.

Other posts by :

1. Equatys wants 2,800 new satellites
2. FCC eyes freeing up Weird Space Stuff spectrum
3. SES happy with releasing 160MHz of spectrum for 5G
4. Inmarsat “likely to win appeal” over Ligado/AST action
5. FCC seeks fair play over foreign satellite access
6. Bank raises RocketLab target price
7. Paramount throws kitchen sink
8. Ukraine wants its own LEO system
9. SpaceX outlines Starlink cellular delivery plan

Categories: Articles, Business, M&A

Tags: All3Media, Banijay, bank, berenberg