Media and entertainment company Discovery Communications has completed its acquisition of a controlling interest in pan-regional sports broadcaster Eurosport.
Discovery has now increased its stake in Eurosport from 20 per cent to 51 per cent as part of the deal, which was originally struck with the latter’s parent company, French commercial broadcaster TF1 Group, in December 2012. Discovery confirmed earlier this year that it planned to accelerate its acquisition of a controlling shareholding in Eurosport.
The closing price for Eurosport International was based on an average enterprise valuation for the Eurosport Group of €902m (1.2bn). The value of Eurosport France, €85m, has been deducted from the value. TF1 expects to retain its 80% interest in Eurosport France until at least January 1, 2015.
TF1 will retain the ability to sell its remaining 49-per-cent stake in Eurosport International to Discovery.
The deal covers Eurosport’s six pay-TV brands: Eurosport, Eurosport HD, Eurosport 2, Eurosport 2 HD, Eurosport Asia-Pacific and Eurosportnews.
David Zaslav, president and chief executive of Discovery Communications, said: “Today is an exciting day for Discovery Communications and our leadership as the number one pay-TV programmer in the world. Eurosport is a perfect strategic fit for growing market share, strengthening relationships with advertisers and affiliates, and bringing ‘must have’ content to passionate viewers across the globe.”
He added: “By combining Eurosport’s popular sports programming with Discovery’s global brands and local expertise, we will continue to capitalise on the international growth of pay-TV and create long-term value for our shareholders.”