SILVER SPRING, Md. and
PARIS, Jan.
21, 2014 /PRNewswire/ -- Discovery Communications and
TF1 Group today announced Discovery would acquire a controlling
interest in Eurosport International through an extension of their
larger strategic partnership first announced in December 2012. The deal to increase Discovery's
interest from 20 to 51% accelerates the original agreement by
nearly one year.
"Eurosport is one of the strongest, most dynamic sports
platforms in the world. Over the past year, as we have been
working directly with our partners from TF1, it became clear that
combining the power of Eurosport's brands and audience reach with
Discovery's network portfolio, boots on the ground, and
country-specific expertise creates an unrivaled and powerful
offering for viewers, advertisers and affiliates," said
David Zaslav, President and CEO of
Discovery Communications. "Today's announcement underscores
Discovery's strategy to support already strong organic growth with
targeted acquisitions and partnerships. This deal will enable our
industry-leading International team and its new leader, JB
Perrette, to create new value for our business partners by
developing and sharing programming across channel brands, and
building a stronger and more diversified network portfolio. We are
privileged to continue our successful relationship with TF1 Group
and look forward to growing Eurosport for many years to come."
The flagship Eurosport network reaches 133 million homes across
54 countries in 20 languages. Eurosport's brands and platforms also
include: Eurosport 2 reaching 69 million households across 51
countries; Eurosport HD, the high definition simulcast of
Eurosport, available in 32 million homes in 48 countries; Eurosport
Asia-Pacific reaching 16 countries; and Eurosportnews, a 24-hour
news channel and online hub, providing an up-to-the-minute sports
news feed available in 48 countries.
"With its successful track record of investing in quality
content and building global brands, Discovery Communications is
perfectly positioned to further expand and increase the value of
Eurosport," said Nonce Paolini, Chairman and CEO of TF1.
"Eurosport's vast sports platform coupled with Discovery's
extensive network portfolio will entertain and engage audiences and
generate additional revenue streams for our business associates and
distribution partners globally."
Discovery was one of the first U.S. media companies to launch
channels in Europe in 1989 and has
invested steadily and significantly in its international business
for 25 years. The combined reach of Discovery Communications,
Eurosport and the 2013 acquisition of SBS Nordics, will be 2.7
billion cumulative subscribers across nearly 200 networks spanning
more than 220 countries and territories worldwide. Discovery
Communications will strengthen its leadership as the #1 pay-TV
programmer in the world.
Today's agreement was based on an average enterprise valuation
for the Eurosport Group of €902 million (approximately $1.2 billion), partly corresponding to the
initial valuation and partly to a higher valuation linked to the
control of the company. From this Group valuation, the value of
Eurosport France (€85 million, approximately $115 million) has been deducted. TF1 expects to
retain its 80% interest in Eurosport France until at least
January 1, 2015. Also, today's
announcement does not impact the other two elements of the original
deal - the 20% interest Discovery acquired in TV Breizh,
Histoire, Ushuaia TV and Stylia channels, and a production alliance
with TF1 Group. TF1 will retain the ability to exercise a put
option over the remaining 49%, which would potentially increase
Discovery's ownership to 100%.
The closing of the deal is subject to customary closing
conditions, including regulatory approvals, and is expected to
occur in the coming months.
Rothschild acted as financial advisor to Discovery
Communications on this transaction, and DLA Piper served as its
legal advisors. Darrois Villey Maillot Brochier served as legal
advisors to TF1 on this transaction.
About TF1
TF1 (NYSE Euronext Paris: FR0000054900 / TFI) is an integrated
media group with a range of businesses in high-growth segments. Its
corporate mission is to inform and entertain. In freeview
television, the Group's channels are TF1 (the major events channel,
no. 1 in France), TMC
(no. 5 in France, and
no.1 digital terrestrial channel), NT1, and HD1. The TF1 Group
is also present in pay TV with Eurosport (the leading pan-European
sports broadcasting platform, received by 133 million households in
Europe), TV Breizh (France's no 1
cable/satellite channel), Ushuaia TV, Histoire, Stylia and
LCI. The TF1 group's activities span the entire value chain in the
broadcasting industry. TF1 has also created a broad range of
merchandising spin-offs from its main channel. Harnessing the
growth of the Internet and new technologies, TF1 produces, develops
and publishes new interactive content and services for the Web,
smartphones, tablet computers and connected TV. For more
information please visit www.groupe-tf1.fr.
About Discovery Communications
Discovery
Communications (Nasdaq: DISCA, DISCB, DISCK) is the world's #1
nonfiction media company reaching 2.5 billion cumulative
subscribers in over 220 countries and territories. Discovery is
dedicated to satisfying curiosity through more than 190 worldwide
television networks, led by Discovery Channel, TLC, Animal Planet,
Science and Investigation Discovery, as well as U.S. joint venture
networks OWN: Oprah Winfrey Network and the Hub Network. Across the
Nordic region, Discovery owns and operates SBS Discovery Media, a
top-three portfolio of television brands that feature leading
nonfiction content, as well as locally produced entertainment
programs, sports and the best scripted series and movies from major
studios. Discovery also is a leading provider of educational
products and services to schools, including an award-winning series
of K-12 digital textbooks, and a digital leader with a diversified
online portfolio, including Discovery Digital Networks. For more
information, please visit www.discoverycommunications.com.
SOURCE Discovery Communications
