By Dow Jones Business News,
January 21, 2014, 01:18:00 PM EDT
By Anna Prior
Discovery Communications Inc. acquired TFI Group's controlling interest in Eurosport International as the media
company continues its overseas expansion.
The deal is an extension of a larger strategic partnership dating back to December 2012, the companies said
Tuesday, adding the deal increases Discovery's interest to 51% from 20% and accelerates the original agreement by nearly
The deal is based on an average enterprise valuation for the Eurosport Group of about $1.2 billion, and TF1 will
retain the ability to exercise a put option over the remaining 49%, which would potentially increase Discovery's
ownership to 100%, the companies said.
The announcement confirms a report in The Wall Street Journal last week that said Discovery was in talks to
increase its stake in the Eurosport network, citing a person familiar with the matter.
Discovery, which owns the Discovery Channel and Animal Planet, is turning its attention back to expanding overseas,
which had been its focus before the company began talking with Scripps Networks Interactive Inc. about a possible
merger, though those talks were abandoned earlier this month, according to last week's report.
Discovery in October reported its third-quarter profit rose 24% as recent acquisitions buoyed results. The stock
has risen 19% in the last 12 months.
Write to Anna Prior at email@example.com
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