Discovery buys Northern European TV channels for $1.7 bn

Global mass media and entertainment company Discovery Communications Inc yesterday agreed to buy SBS Nordic operations from Germany's ProSiebenSat.1 Group for an enterprise value of approximately €1.3 billion ($1.7 billion), aiming to expand its reach in Northern European nations with entertainment and sports TV channels.

The purchase will include 12 television networks in Norway, Sweden, Denmark and Finland and other assets, which will further solidify the US company's long-term growth in the strong Nordic TV markets, Discovery said in a statement.

The acquisition also includes SBS Nordic's 19 radio stations including the no.1 radio portfolio in Sweden.

Through the deal, Discovery expects to add entertainment, scripted and sports programming to the company's portfolio for the first time.

The company also announced that its board has approved a $1-billion increase in its share repurchase programme.

Discovery's president and CEO David Zaslav said, ''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.''