Exclusive-French broadcaster TF1 weighs sale of production arm Studio TF1, sources say

LONDON/MILAN, Aug 3 (Reuters) - French broadcaster TF1 is weighing a sale of its production and distribution arm Studio TF1, formerly known as Newen Studios, as it seeks to focus more on its streaming business, two sources with knowledge of the matter said.

TF1 has lined up Rothschild to organise the process, which is at an early stage, said one of the sources, who spoke on condition of anonymity because the discussions are private.

A deal could value Studio TF1, which produces and distributes dramas, movies and documentaries across Europe, at around €400 million ($457 million), the source added.

TF1 Group said it does not comment on market rumours or speculation. Rothschild did not immediately respond to a request for comment.

A sale would mirror moves elsewhere in the European broadcasting sector, where media groups are increasingly separating production assets from their linear television and streaming operations. Britain's ITV is selling its broadcast business to Comcast's Sky in a deal that would leave it focused on its Studios division.

The potential disposal comes as French broadcasters grapple with a weak advertising market. TF1's advertising revenue fell 8.7% year on year to €714 million in the first half of 2026.

The decline in linear TV advertising was compounded by uncertainty among advertisers linked to the conflict in the Middle East.

TF1, whose largest shareholder is construction-to-media conglomerate Bouygues, has stepped up investment in its streaming platform TF1+ in recent years as it adapts to a media landscape increasingly dominated by global players such as Netflix, Disney+ and Amazon Prime Video. 

A sale could also strengthen TF1's financial firepower for future dealmaking, including a possible bid for rival broadcaster M6 should the opportunity arise, the first source said.

Studio TF1 operates across Europe, the United States and Canada, producing fiction, daily drama series, movies, documentaries, animation and entertainment programmes. It was rebranded from Newen Studios earlier this year.

(Reporting by Amy-Jo Crowley in London and Elvira Pollina in Milan. Editing by Anousha Sakoui and Mark Potter)