Discovery Communications (DISCA, DISCB,DISCK) Friday announced the completion of its acquisition of a controlling stake in Eurosport International, Europe's leading sports entertainment group. Discovery raised its interest in Eurosport to 51% from 20% as part of a larger strategic partnership with TF1 Group that began in December 2012.
The closing price for Eurosport International was based on an average enterprise valuation for the Eurosport Group of €902 million (about $1.2 billion), partly corresponding to the initial valuation and partly to a higher valuation linked to the control of the company. From this group valuation, the value of Eurosport France (€85 million, about $115 million) has been deducted.
TF1 expects to retain its 80% interest in Eurosport France until at least January 1, 2015. Also, today's closing does not impact the other two elements of the original deal - the 20% interest Discovery acquired in TV Breizh, Histoire, Ushuaia TV and Stylia channels, and a production alliance with TF1 Group.
TF1 will retain the ability to exercise a put option over the remaining 49% in Eurosport International, which would potentially increase Discovery's ownership to 100%.
Meanwhile Discovery said it plans to make long-term strategic decisions and targeted investments to strengthen and expand Eurosport's sports programming and services to nourish and maximize Eurosport's audience and reach.
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