A consortium of major French telecom operators has agreed to acquire billionaire Patrick Drahi’s flagship telecom business in a landmark deal that will reshape the country’s industry structure.

The buyers include Bouygues Telecom, Orange, and Free-iliad Group, which have signed a memorandum of understanding with Altice France to acquire its main asset, SFR.

Deal Overview

• Total valuation: ~€20.4 billion ($23.5 billion, including debt)
• Asset being acquired: SFR (France’s second-largest telecom operator)
• Structure: Consortium takeover followed by asset/customer split
• Timeline: Expected completion in 2H next year, pending regulatory approval

Strategic Shift for Patrick Drahi

The transaction represents a major downsizing of Drahi’s telecom empire. Over the past decade, he built Altice into a global telecom and media conglomerate through aggressive acquisitions funded by heavy borrowing during a low-interest-rate environment.

However, rising interest rates have significantly increased debt servicing costs, forcing a restructuring of his portfolio and gradual asset sales.

Industry Impact: Fewer Competitors, Bigger Players

If approved, the deal would reduce France’s mobile telecom operators from four to three, a structural shift that regulators have historically been cautious about.

Supporters of consolidation argue that:

• Larger scale improves network investment capacity
• Stronger balance sheets support 5G and fiber expansion
• Industry efficiency increases competitiveness internationally

Critics, however, warn that fewer operators could eventually lead to:

• Higher consumer prices
• Reduced competition
• Market concentration risks

Regulatory Outlook

The transaction is expected to face close scrutiny from European and French competition authorities, making it one of the most closely watched telecom deals in recent years.

The consortium has stated that the deal will preserve competition while strengthening long-term investment capacity in France’s telecom sector.

Bottom Line

This acquisition marks both the dismantling of Drahi’s telecom empire and a potential turning point for European telecom consolidation, as the industry continues to balance competition concerns with the need for scale in a capital-intensive sector.