Discovery & TF1 Inch Closer to Finalizing Deal

PARIS: TF1 and Discovery Communications have confirmed that they are in the process of finalizing exclusive negotiations to form a strategic alliance, part of which would see Discovery taking a 20-percent interest in the Eurosport group.

There are three key areas that the alliance would focus on, one of which is the development of future activities at Eurosport. Initially, Discovery would gain a 20-percent stake in Eurosport International and Eurosport France for around $221.6 million. In two years’ time, Discovery could up that interest to 51 percent. Eventually, Discovery could take over full ownership.

Another key focus is on the development of pay-TV content for France, in particular with the output of documentary, magazine and current affairs channels. Discovery would receive a 20-percent interest in the TV Breizh, Histoire, Ushuaïa TV and Stylía channels, for around $18.2 million. It could also up these interests to 49 percent in two years.

In the production arena, the proposed alliance would would see TF1 Production working on magazine and documentary programs.

The companies said that an agreement is expected to be firmed up in the coming weeks.