The board of directors at the French commercial network have agreed Paolini finalise negotiations with Discovery. The proposal is that Discovery would take a 20% minority interest in the Eurosport group, which comprises both Eurosport International and Eurosport France for €170 million.
TF1 has granted Discovery an option to raise its interest to 51% in two years time. If Discovery were to exercise its option, TF1 could then play its own put option over the remaining 49%, which would increase Discovery’s ownership to 100%.
As well as Eurosport, Discovery would also become a shareholder in the TV Breizh, Ushuaia TV and Stylia channels. An initial 20% for €14 million could lead to a 49% share.
The channels that focus their output around documentaries, magazine and current affairs channels are prime Discovery territory.
Employee representatives are to hold discussions with management on the proposals with a decision said to be weeks away.