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"Agency holding groups have seen sharp competition from both online platforms and scrappy independents, driving the push to scale up and diversify their offerings. In terms of UK revenue, this merger would create a combined entity on par with WPP. Beyond simply bulking up, there’s real potential for margin improvement, as scale allows for more efficient investments in AI and other tech capabilities, which are increasingly critical for agencies. Publicis has shown how transformative this can be with its acquisitions over the last decade."

"There’s also some strategic complementarity in the deal – IPG would significantly enhance Omnicom’s strength in healthcare, experiential marketing and other niche areas. While this move is about overall scale, as successful indies show, scale isn't everything. Delivering for your clients strategically and creatively is the heart of the business."

“Della Valle has definitely done enough to prove herself more than capable,” says Karen Egan, head of telecoms at Enders Analysis. “But there is a limited time to get Germany right. There have been a series of challenges there that have not been surmounted as well as they might have been.”

Egan says the shares have suffered from a “conglomerate discount” and that Della Valle’s work “tidying up the group is going to help with that”.

She adds: “But the story has been marred by the ongoing difficulties in Germany, if Germany was firing on all cylinders, so would the shares.”

Karen Egan, head of telecoms at Enders Analysis, said the approval was the right outcome after Hutchison warned it was struggling to invest because it did not make a return on its capital.

“Three high-quality networks instead of four inferior ones will serve consumers and businesses better, and the industry can move away from the low returns, low investment cycle that has dogged it.”

“Is it worth it?” asks Francois Godard, a senior media and telecoms analyst at Enders Analysis. “It’s an ambitious deal. On the one hand, it will be a very nice marketing campaign for DAZN because people will need to register to their platform to view the matches.

“They will sell advertising against this and it will give them a higher profile for football fans in the U.S., where they are mainly associated with boxing. It’s an investment, and they are investing in building their subscriber base and growing their brand. 

“It’s taking place at a time of the year when there is no football in Europe, so it can act as a bridge for football fans. It also comes at the time of the year when DAZN loses lots of subscribers because the football season is over, so it is a good opportunity to get them hooked.”

“It’s an ambitious target,” Godard says when asked if he thinks they can recoup their investment through selling commercial deals.  

The deal was welcomed by the media consultancy Enders, which said that The Observer had been “under-utilised” by The Guardian.

Claire Holubowskyj, a senior research analyst, said: “It now has the chance to reassert its own identity: a crucial factor for long-term sustain­ability within today’s rapidly shifting media environment. The purchase process will be the beginning of a long road towards integrating the two complementary brands, and has every chance of a bright future.”

However, the group could create a separate company, listed in Paris, which it would control 51% of, and in which the two free-to-air channels would be housed, estimates François Godard, from the Enders Analysis firm. Having gone to London to attract international investors, "it is unlikely that Canal will refuse an interesting offer to save CNews and CStar," notes the analyst.

"There is always the option of selling CNews to the Bolloré group. This channel may be a commercial success, but will never be a source of substantial profits," adds the expert.