"For much of the past two years, Drahi has been navigating tricky entrepreneurial waters. Altice France was carrying significant debt, SFR was facing operational headwinds, and the broader environment for telecoms and financing had become more demanding. Many commentators, especially those less familiar with Drahi's particular type of business savvy, assumed that if a sale did pull through, it would most likely happen from a position of weakness, with SFR's buyers dictating the terms."
"After rejecting an initial offer of €17 billion in October, Drahi ultimately secured an agreement from the tripartite telco coalition at €20.35 billion, with the potential for the valuation to rise further depending on performance milestones, effectively achieving a substantial bump. In only a few short months, the transaction moved materially upward, confirming that this was never simply about finding a buyer, but about creating the right conditions for the right deal."
"As one financial analyst remarked the morning after the agreement was inked, "the biggest winner is Patrick Drahi." The comment may have been blunt, but it reflected a broader market sentiment: despite the complexity of the context, Drahi had secured one of the strongest exits possible. Understanding what the market really wanted"
Altice France carried significant debt, SFR faced operational headwinds, and telecom financing conditions became more demanding. Many expectations assumed a sale would occur from weakness, with buyers dictating terms. An initial offer of €17 billion was rejected, and an agreement was later reached at €20.35 billion with potential valuation increases tied to performance milestones. The transaction moved materially upward within months, indicating the outcome depended on creating the right conditions rather than merely finding a buyer. The result was viewed as a strong exit for Patrick Drahi, reflecting market sentiment that the deal terms were secured effectively despite complexity.
Read at London Business News | Londonlovesbusiness.com
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