Discovery spends $2 billion on SBS Nordic and alliance with TF1
Cable programming giant Discovery Communications has gone on a $2-billion spending spree in an effort to significantly boost its international presence.
Discovery, parent of several popular U.S. cable channels including Discovery, TLC and Animal Planet, has struck a deal to acquire Scandinavian programmer SBS Nordic from Germany’s ProSiebenSat.1 Media AG, and has formed a strategic alliance with French media giant TF1 that includes a 20% equity stake in its popular Eurosport Group and four pay-TV channels in France.
As its cable properties in the U.S. mature, Discovery has placed a priority on expanding its footprint overseas in content and distribution.
According to a regulatory filing, Discovery is paying about $1.73 billion for SBS, which has television and radio properties in Sweden, Norway, Denmark, Finland and Britain. The company was in competition for SBS with private equity firm Providence Equity.
Quiz: The year in business, 2012
In a statement, Discovery Chief Executive David Zaslav said, “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.”
The 20% equity stake in EuroSport, which reaches 123 million homes in Europe, cost Discovery $221 million with options to increase its stake and potentially buy the service outright. In addition, Discovery is spending $18 million to invest in TF1 pay channels.
Last month, Discovery acquired Dubai-based Takhayal Entertainment, the parent company of Fatafeat, a popular food network in the region.
ALSO:
Disovery buys Takhayal Entertainment
Discovery in negotiations to partner with TF1
twitter.com/@JBFlint.
It's a date
Get our L.A. Goes Out newsletter, with the week's best events, to help you explore and experience our city.
You may occasionally receive promotional content from the Los Angeles Times.