Discovery close to $222m TF1 deal

Discovery Communications is set to finalise a deal with France’s TF1 that will give it a 20% stake in sports network Eurosport for €170m (US$222m).

The two broadcasters began discussions about a strategic alliance in November and an agreement is now close, according to a TF1 statement today.

The deal, for a minority stake in Eurosport, includes an option for Discovery to raise its stake to 51% in two years time, at which point TF1 can choose to transfer its 49% share to Discovery as well.

Discovery is also paying €14m for 20% stakes in TF1’s TV Breizh, Histoire, Ushuaïa TV and Stylía channels, with the same arrangement enabling them to increase to 49% in two years.

Discovery is also going to be involved in documentary production via TF1 Production.

Earlier this week it was revealed that Discovery is close to buying ProSieben’s channels in Scandinavia and it also recently closed a deal for Dubai-based media company Takhayal Entertainment.

The move is set to be signed in the coming weeks, pending consultation with staff organisations.