Discovery, TF1 finalise agreement
December 23, 2012
French media group TF1 and Discovery Communications have wasted no time in finalising the agreement announced December 13 and are moving forward to build a three-tier strategic alliance across Eurosport, four pay-TV channels and production.
Following a favourable opinion from the employee representative bodies, the partners December 21 confirmed the signature and closing of their strategic alliance agreement:
- The acquisition by Discovery of the 20 per cent interest in Eurosport was based on an enterprise valuation of €170 million.
- The acquisition by Discovery of the 20 per cent interest in pay-TV (TV Breizh, Histoire, Ushuaïa TV and Stylía) was based on an enterprise valuation of €14 million.
Nonce Paolini, Chairman and CEO of TF1, said the agreement tied in with TF1’s determination to open up ambitious prospects for its pay-TV channel distribution business, while ensuring the territorial development of Eurosport worldwide and optimising the distribution of its channels in France. “It also enables TF1 Production to grow its expertise in content creation outside France,” he added.
Mark Hollinger, president and CEO of Discovery Networks International said he was delighted to be able to start working more closely with the TF1 teams across Eurosport, its four pay-TV channels and its production teams. “Bringing TF1’s strong flagships and sports programming, and pan-regional sales expertise to Discovery’s powerful brand, global footprint and local sales expertise represents a win-win in my book. I look forward to a very successful relationship over the next two years and beyond,” he stated.