The Rise of MediaForEurope: A Strategic Play to Reshape European Media Consolidation

MediaForEurope (MFE) has emerged as a formidable force in the European media landscape, leveraging cross-border mergers and acquisitions (M&A) to consolidate its position against U.S. streaming giants. Since 2023, MFE has executed a bold strategy of geographic expansion, culminating in its 2023 cross-border merger with Mediaset España and a 2025 bid to increase its stake in Germany’s ProSiebenSat.1 Media SE (P7S1). By offering a mix of cash and shares for P7S1, MFE aims to become the largest ad-revenue-generating broadcaster in Europe, surpassing RTL Group SA [3]. This move is underpinned by a €3.4 billion financing package, signaling MFE’s intent to scale rapidly and challenge the dominance of Netflix, Amazon Prime Video, and Disney+ [3].

The European media sector is undergoing a seismic shift as traditional broadcasters seek to counter the fragmentation caused by U.S. platforms. MFE’s strategy hinges on achieving economies of scale in advertising—a critical battleground where European companies have historically lagged. By consolidating operations in Italy, Spain, and Germany, MFE aims to leverage its pan-European footprint to negotiate higher ad rates and diversify revenue streams. This approach contrasts with U.S. giants, which rely on transnational network effects and vast content libraries to retain subscribers [2]. For instance, Netflix’s ad-supported tier now accounts for 50% of its new European subscribers, reflecting a growing acceptance of hybrid revenue models [3]. MFE’s focus on advertising-driven growth positions it to capitalize on this trend while avoiding the high content production costs that burden streaming platforms.

However, MFE’s path is fraught with challenges. U.S. streaming services dominate European market shares, with Netflix holding 27% in the UK and Amazon Prime Video at 26% [2]. These platforms benefit from regulatory tailwinds, such as EU mandates requiring a minimum percentage of European content in their catalogs, which MFE lacks. Additionally, younger audiences increasingly favor on-demand streaming over traditional TV, a shift that MFE’s consolidation strategy may not fully address [3]. Analysts argue that cross-border M&A alone cannot reverse declining TV viewership but could slow the erosion of traditional media’s relevance [3].

Regulatory dynamics further complicate MFE’s ambitions. The EU’s Foreign Direct Investment Screening Regulation and U.S. CFIUS scrutiny have heightened the complexity of cross-border deals, particularly in media and technology sectors [6]. MFE’s proposed restructuring of P7S1, including spinning off non-core divisions, faced resistance in 2024, underscoring the political and shareholder risks inherent in such strategies [3]. Meanwhile, the anticipated shift in U.S. antitrust enforcement under a new administration could impact MFE’s ability to secure regulatory approvals for future acquisitions [6].

Despite these hurdles, MFE’s aggressive consolidation aligns with broader industry trends. European media companies, including ITV and RTL, are exploring mergers to bolster content production and distribution capabilities [5]. The sector’s focus on hybrid revenue models—combining subscriptions, advertising, and bundling with telcos—reflects a recognition that no single strategy can dominate the evolving market [2]. MFE’s ability to integrate P7S1’s German audience base with its existing European operations could create a critical mass to rival U.S. platforms, particularly in ad-supported tiers.

In conclusion, MediaForEurope’s cross-border M&A strategy represents a high-stakes bid to reshape European media consolidation. While U.S. streaming giants maintain a technological and financial edge, MFE’s localized approach and advertising-centric model offer a compelling counterpoint. The coming years will test whether consolidation can bridge the gap between traditional broadcasting and the digital-first world—or merely delay an inevitable shift.

Source:
[1] Streaming Service Market Share (2025): Global Revenue [https://evoca.tv/streaming-service-market-share/]
[2] Europe: 5 key media trends to watch in 2025 [https://www.spglobal.com/market-intelligence/en/news-insights/research/europe-5-key-media-trends-to-watch-in-2025]
[3] MFE-MEDIAFOREUROPE increases offer consideration for ... [https://www.prosiebensat1.com/en/newsroom/mfe-mediaforeurope-increases-offer-consideration-for-its-voluntary-public-takeover-offer-for-prosiebensat1-570927]
[4] Geopolitics in Europe Drive Cross-Border M&A [https://arc-group.com/geopolitics-europe-cross-border-m-a/]