Silver Spring, Maryland – Discovery Communications has announced a definitive agreement with ProSiebenSat.1 Group to purchase the company’s SBS Nordic operations for a total enterprise value of approximately US$1.7 billion (€1.325 billion). Additionally, TF1 and Discovery also announced they have taken the next step in their negotiations aimed at forging a strategic alliance to create value in the numerous complementary activities of the two media companies
The acquisition of SBS Nordic includes 12 television networks in Norway, Sweden, Denmark and Finland, among other assets, and further solidifies Discovery’s long-term growth in the strong Nordic TV markets. The deal also expands Discovery’s brand portfolio by adding general entertainment, scripted and sports programming to the company’s suite of services for the first time.
The transaction is subject to regulatory review and is expected to close in early 2013. Additionally, Discovery also announced that its Board of Directors has approved a US$1.0 billion increase to its existing stock repurchase programme.
The TF1 and Discovery partnership will focus on three key areas: Develop the future activities of Eurosport; develop pay-TV content in France; and develop production activities in France via TF1 Production.
“SBS Nordic has a fully distributed portfolio of dual revenue stream networks with a terrific management team that will expand Discovery’s footprint across the Nordic region, which includes some of the most well-penetrated and stable TV markets in the world,” said David Zaslav, president and CEO of Discovery Communications. “Individually, and taken together, the acquisition of SBS Nordic, our pending strategic partnership with TF1 through the acquisition of a minority stake in Eurosport, and the increase in our share repurchase programme are all complementary to our long-term growth strategy of delivering sustained operating results, creating strong organic growth through investment in content, brands and talent, and returning capital to shareholders.”
