Discovery buys SBS Nordic from ProSiebenSat.1

Discovery has acquired SBS Nordic from ProSiebenSat.1 for US$1.7 billion and has also taken a minority stake in Eurosport.

SBS Nordic comprises 12 TV networks in Norway, Sweden, Denmark and Finland, adding general entertainment, scripted and sports programming to Discovery’s portfolio for the first time.

Separately, Discovery said it will take a 20% minority stake in Eurosport for US$221.6 million. The deal gives it an option to raise the stake to 51% in two years. At that point Eurosport’s current owner, French broadcast group TF1, would have a put option requiring Discovery to buy its remaining 49% in the broadcaster.

Both deals were announced this morning.

SBS has four networks in Denmark and in Norway and two in Sweden and in Finland.

“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, president and CEO of Discovery Communications.

The Discovery boss added: “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.”