By WSJ Staff

A consortium has agreed to buy Patrick Drahi's French telecommunications operations for more than $23 billion, in a deal that dismantles a major plank of the billionaire's once-sprawling business empire.

Bouygues Telecom, Orange and Free-iliad Group said late Saturday that they had signed a memorandum of understanding with Drahi's Altice France to acquire SFR, the country's second-largest telecom operator.

The deal marks a major shift in Drahi's business portfolio and is also set to be a closely watched test of European regulators' willingness to permit further consolidation in the industry.

Drahi's Altice became a major player in the telecommunications industry by buying up assets across Europe and in the U.S. He also bought storied auction house Sotheby's.

To build his telecom empire, the French-Israeli billionaire borrowed heavily when interest rates were low. Now that rates have risen, he has started selling off chunks of his companies -- and ceding some equity to lenders -- to lower his debt burden.

Drahi's deal to sell SFR follows months of negotiations with the consortium after an earlier roughly $20 billion bid was rejected. The consortium made a revised, higher bid in April.

The transaction values SFR at around 20.4 billion euros, including debt, the equivalent of about $23.5 billion. Once complete, the consortium plans to split up SFR's assets and customers.

The deal will reshape France's telecom sector, cutting the number of major operators from four to three -- a level that some regulators have previously bristled at, fearing it could lead to higher prices for consumers.

Telecom executives have been eager to push for greater scale in recent years to reduce competition and help fund investments in infrastructure and new technologies.

The consortium said Saturday the deal would "preserve a highly competitive ecosystem and reinforce the sector's long-term capacity to invest, innovate and anticipate major technological changes."

The deal is expected to complete in the second half of next year, subject to regulatory approval, the consortium added.

(END) Dow Jones Newswires

June 07, 2026 06:56 ET (10:56 GMT)

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