Discovery to Purchase SBS Nordic Networks for $1.7 Billion

SILVER SPRING: Discovery Communications is acquiring the SBS Nordic operations of the ProSiebenSat.1 Group, including 12 television networks, in a $1.7 billion transaction.

The deal includes four networks in Norway, two in Sweden, four in Denmark and two in Finland. With the purchase, Discovery also gains SBS Nordic’s 19 radio stations and several digital brands. This brings to the Discovery bouquet general entertainment, scripted and sports programming for the first time. The acquisition is expected to formally close in early 2013. The move comes on the heels of Discovery entering its next stage of exclusive negotiations for a strategic partnership with TF1, through which it gains a 20-percent stake in Eurosport International.

“SBS Nordic has a fully distributed portfolio of dual revenue stream networks with a terrific management team that will expand Discovery’s footprint across the Nordic region, which includes some of the most well-penetrated and stable TV markets in the world,” said David Zaslav, the president and CEO of Discovery Communications. “Individually, and taken together, the acquisition of SBS Nordic, our pending strategic partnership with TF1 through the acquisition of a minority stake in Eurosport, and the increase in our share repurchase program are all complementary to our long-term growth strategy of delivering sustained operating results, creating strong organic growth through investment in content, brands and talent, and returning capital to shareholders.”
 
Thomas Ebeling, the CEO of ProSiebenSat.1 Media, added: “With Discovery Communications we have found a great new strategic owner, and a truly global media leader, for our Northern European companies. I’m very happy with this result. I would like to take this opportunity to thank all our colleagues in the North, and particularly our CEO in these territories, Henrik Ravn, for their outstanding performance in the past years. I wish them every success as part of the Discovery family.”

“The acquisition of SBS Nordic is a continuation of Discovery’s more than 20-year strategy of investing internationally to build the most extensive global footprint in media, which now includes 153 networks in 217 countries and territories,” commented Mark Hollinger, the president and CEO of Discovery Networks International. “We look forward to adding SBS Nordic’s networks and genres to our portfolio, learning from their well-respected and experienced leadership team, and further solidifying the continued growth of our international business, which is led by our strong regional team.”