Discovery Widens Offerings With Its Latest Deal

Discovery Communications has inked an agreement with ProSiebenSat.1 Group to purchase the company's SBS Nordic operations for a total enterprise value of approximately US$1.7 billion.The acquisition of SBS Nordic including 12 television networks in Norway, Sweden, Denmark and Finland, among other assets, strengthens Discovery's long-term growth in the Nordic TV markets.The acquisition also includes SBS Nordic's 19 radio stations as well as several digital brands.The deal expands Discovery's brand portfolio by adding general entertainment, scripted and sports programming to the company's suite of services for the first time.The deal is expected to close in early 2013 however it is transaction is subject to regulatory review. Additionally, Discovery also announced that its Board of Directors has approved a US$1 billion increase to its existing stock repurchase program.According to David Zaslav, president and CEO of Discovery Communications, SBS Nordic has "a fully distributed portfolio of dual revenue stream networks" and this the move was made in an attempt to "expand Discovery's footprint across the Nordic region, which includes some of the most well-penetrated and stable TV markets, globally."It was also announced earlier that Discovery Communications is set to create a strategic deal with integrated media group TF1 that will include taking a 20% stake in Eurosport group."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," Zaslav added.Citigroup acted as financial advisor to Discovery Communications on this transaction.