Media and entertainment company Discovery Communications has increased its stake in the French division of pan-European sports broadcaster Eurosport to the 51-per-cent mark.
Discovery confirmed yesterday (Tuesday) evening that it had increased its shareholding from 20 per cent as part of a broader strategic partnership with French media company TF1 Group that began in December 2012.
The acquisition of a controlling stake in Eurosport France follows the completion of Discovery’s takeover deal for Eurosport International’s operations in Europe and Asia last year.
The closing price for Eurosport International was based on an average enterprise valuation for the Eurosport Group of approximately €900m ($952m). At that time, the value of Eurosport France, €85million, was deducted from the total. TF1 retains an option over the remaining 49 per cent in the now combined Eurosport Group.
“Since acquiring a controlling interest last May, Discovery has made a series of strategic investments to enhance Eurosport’s offerings with affiliates, advertisers and audiences,” Discovery president and chief executive David Zaslav said.
Zaslav added that he expects the Eurosport Player digital service to reach one million subscribers in the next two years, bringing in an additional $100m in revenue.
TF1 Group chairman and chief executive Nonce Paolini said that Eurosport is “performing well and will continue to benefit from Discovery’s strategic investments and expertise around the world.”
Eurosport chief executive Peter Hutton added: “Eurosport France is a cornerstone of the Eurosport Group and will continue to be an important business for us, with dedicated teams and resources in the key French market, where Eurosport is headquartered. Furthermore, Eurosport France and its employees will benefit from rejoining the larger organization and Discovery’s 30 years as a global media company. We can now truly operate as one team and I am thrilled with the progress we are making.”