The British production group behind The Traitors has struck an $8bn (£6bn) deal to merge with French rival Banijay Entertainment.

All3Media confirmed the tie-up with the studio behind Peaky Blinders on Tuesday, in a deal to create the world’s largest independent TV maker.

The combined group, called Banijay, will be responsible for producing more than 170 shows and events across Europe.

This will include shows such as MasterChef, Fleabag, Gogglebox and Call the Midwife.

RedBird IMI, which owns All3Media, and Banijay will be equal partners in the new joint venture.

However, the French business will receive €796mn in compensation owing to the fact that it is the larger company.

The deal will create a European media giant with distribution spanning nearly 250 countries.

This will put it in direct competition with Paramount, the American TV giant controlled by the billionaire Ellison family, as it prepares to take over Warner Bros in an $111bn deal.

Both companies had unsuccessfully explored a merger in 2023 when All3Media was put up for sale by its former joint owners, Warner Bros, Discovery and Liberty Global.

However, the deal was revived in the wake of All3Media being sold in 2024 to RedBird IMI, the Abu Dhabi-backed fund run by Zucker, which in November pulled out of its bid to buy The Telegraph.

All3Media is by far RedBird IMI’s largest asset.

Mr Zucker, who will become the group’s executive chairman, said the deal “brings together Europe, the Americas and Abu Dhabi as investors”.

“It is something that’s exciting to us because it gives us a really global outlook on the media ecosystem going forward,” he told the Financial Times.

The merged business will be led by Marco Bassetti, the Banijay chief executive, while All3Media boss Jane Turton will be named deputy.

The merger is expected to result in job cuts.

Speaking to the BBC on Wednesday, Mr Zucker said: “When there’s any combination like this there are duplicative roles and so we have identified the fact that there will be some cost synergies.

“Those are going to take place in things like real estate and procurement and duplicative roles in corporate function, but what we’re committed to is making sure that there’s no impact on the creative community or any of the production companies that come together as part of this.”

The deal is also likely to raise questions over the future of ITV’s production business.

Both Banijay and All3Media last year explored a £3bn takeover of ITV Studios but a deal did not materialise.

ITV is currently in talks to sell its broadcasting arm to Sky owner Comcast for £1.6bn.

If that deal goes ahead, it will likely need to seek another buyer for its production division.

Try full access to The Telegraph free today. Unlock their award-winning website and essential news app, plus useful tools and expert guides for your money, health and holidays.