Discovery Communications and French media company TF1 have agreed a deal for the American media and entertainment company to acquire a controlling stake in pan-regional sports broadcaster Eurosport nearly a year ahead of schedule.
Discovery acquired 20 per cent of Eurosport as part of a strategic partnership drawn up in December 2012 and secured an option to increase its shareholding to 51 per cent on or after December 21, 2014. However, both parties confirmed that the deal could be accelerated in November 2013. The takeover is expected to be closed “in the coming months” following regulatory approvals.
“This control gives us a leg up on everyone for the platform we can provide, and now we’re competitively in the race country-by-county to look at every sports right,” Discovery chief executive David Zaslav told the Bloomberg news agency. “We’re not ruling anything out.”
TF1 has retained an option to acquire the remaining 49 per cent of Eurosport, which is valued at €902m ($1.23bn), the companies said.
TF1 reiterated that it expects to retain its 80-per-cent shareholding in the Eurosport France division, which is valued by the companies at €85m, until at least January 1, 2015.
“Nobody can match the distribution that Eurosport has and its brand,” Zaslav said. “We can buy rights across all countries it operates in or we can lean in on specific countries and buy more compelling rights.”