TF1, Discovery close agreement to build three-tier strategic alliance
Editor | 23-12-2012
In a rapid turn of events given the stature of the deal, TF1 and Discovery Communications have finalised their strategic alliance agreement which principally see the latter own a fifth of Eurosport, four TF1 pay-TV channels and other production assets.
As reported by Rapid TV News on 13 December 2012, TF1’s board of directors empowered Chairman and CEO Nonce Paolini with the authority to continue and finalise strategic alliance negotiations with Discovery and on doing so has sold the 20% interest in Eurosport based on an enterprise valuation of €170 million and the 20% interest in the TV Breizh, Histoire, Ushuaïa TV and Stylía pay-TV channels based on an enterprise valuation of €14 million.
As he concluded the deal, Paolini said: “I am very pleased to sign this major agreement with one of the world’s largest media companies. It ties 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”.
“I am delighted to be able to start working more closely with the TF1 teams across Eurosport, their four pay-TV channels and their production teams,” added Discovery Networks International president and CEO Mark Hollinger. “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.”