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 one year.
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 anna.prior@wsj.com
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