Italian Broadcast Merger Collapses Over Valuation Disputes

The deal aimed to combine the state-controlled Rai Way with its rival EI Towers, which is backed by infrastructure fund F2i and MFE-MediaForEurope. While the merger promised significant operational synergies—potentially exceeding 10% of their combined 200 million euro cost base—negotiations reached a deadlock over the valuation of the privately held EI Towers. Sources suggest that while MFE was prepared to extend service contracts until 2047 to satisfy RAI’s requirements, the parties could not agree on an equitable equity split for the combined entity.

Following the announcement, Rai Way shares tumbled as much as 7% in morning trading as investors processed the news. Analysts at Equita noted that without the merger, Rai Way faces limited growth prospects on a standalone basis, suggesting that RAI might pivot back to selling a 15% stake in the company. This failure marks the latest chapter in years of political and financial wrangling that has repeatedly prevented a national broadcast champion from forming.