SFR's future is uncertain as its parent company, Altice France, headed by billionaire Patrick Drahi, actively seeks a buyer. The French firm is facing a staggering debt estimated at over €24 billion and has begun the process of selling a majority stake in SFR. The deal, which could value the operator at up to €30 billion, including debt, is crucial to the group's survival. Initial information has already been sent to potential candidates, signaling an acceleration of the timeline.
This move comes as the operator with the red logo prepares to enter into accelerated safeguard proceedings in early June, according to information from BFM Business. This legal step follows a conciliation agreement with the majority of its creditors to restructure its debt. An agreement for a reduction of €8.6 billion was announced in February. It is presented as an administrative formality to ratify the plan. The Paris Commercial Court is expected to validate this agreement by early fall, thus stabilizing the company's new financial structure.
A host of suitors on the lookout
In the running for a partial or total takeover, the big names in French telecoms: Bouygues Telecom, Free (Iliad), and even Orange are closely examining the case. In France, no operator can swallow up a giant like SFR without risking becoming far too big, but a split remains possible. Bouygues and Free are said to be eyeing SFR's 19 million mobile subscribers and 6 million fixed-line subscribers. Orange, already the market leader, could focus on business customers and a portion of the valuable 4G and 5G mobile frequencies, but a massive acquisition would run up against competition rules.
The interest is not limited to France. The Emirati operator Emirates Telecommunications Group is among the potential candidates, as are investment funds. Several of these players have already appointed advisors to evaluate a transaction, and some could consider alliances for a partial dismantling of the operator.
Complex negotiations ahead
The sale, however, promises to be difficult. Patrick Drahi is reportedly planning to separately sell SFR's fiber optic network (XpFibre) to further reduce the group's debt, effectively excluding this strategic asset from the scope of acquisition by direct competitors. The distribution of SFR's approximately €15 billion in debt is another major challenge.
A possible consolidation of the French market, which would see the number of major players reduced from four to three, will be subject to approval by French and European regulatory authorities. The latter will ensure that price increases are avoided for consumers and that investments in networks are maintained. Benoît Cœuré, President of the Competition Authority, recently stated that he is open to consolidation under certain conditions. Negotiations are also expected to be tense given the notoriously difficult relationship between Martin Bouygues (Bouygues) and Xavier Niel (Iliad). Patrick Drahi nevertheless hopes to reach an agreement by the end of the year.
What impact on SFR and its customers?
This critical situation reflects the difficulties encountered by SFR for several years, with a loss of more than 1.5 million mobile subscribers in just two years and a 14% drop in revenue in the previous fourth quarter. To get back on track and reduce costs, SFR will close more than 30 stores as early as July 2025. This decision would mark a shift towards a 100% online model that could confuse some of its customers.
For SFR subscribers, uncertainty is growing, and the most likely scenario remains a redistribution of customers to several operators. It is currently difficult to know which operator customers will end up with, as this may depend on their offering (internet box, mobile, etc.). While a sale could lead to waves of migration, it is likely not to really disrupt subscribers' habits. Recent acquisitions, such as Bouygues Telecom's purchase of La Poste Mobile, generally have little impact on customers.
However, vigilance remains essential in the coming months and some customers can also keep informed of the best current offers to anticipate possible changes.
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