Discovery Communications Takes Control of Eurosport

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.

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