Discovery Communications (NASDAQ:DISCA) has inked a deal to buy 12 television networks in Norway, Sweden, Denmark and Finland from Germany’s largest television company ProSiebenSat.1 for $1.7 billion.
The Silver Spring, Md.-based company, whose cable networks include Discovery Channel, TLC and Animal Planet, said the purchase of SBS Nordic further solidifies Discovery’s long-term growth in the profitable Nordic TV markets.
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It also adds general entertainment programs, including sports programming, to Discovery’s suite of service for the first time.
SBS has the No. 2 TV portfolio in Norway with four networks and an overall viewership share of 34%, as well as the third largest portfolio in both Sweden and Denmark.
“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," Discovery CEO David Zaslav said in a statement.
The transaction, subject regulatory review, is expected to close in early 2013. Citigroup (NYSE:C) acted as financial advisor to Discovery Communications.
Also on Friday, Discovery said its board approved a $1 billion increase to the company’s existing stock repurchase program.