Discovery Channel close to deal on Eurosport

The Associated Press, Thursday, December 13, 2012, 7:58am (PST)

PARIS (AP) — The parent company of the Discovery Channel is close to buying a stake in Europe's leading sports network, Eurosport.

TF1, the Paris-based media group that owns Eurosport, says Discovery Communications could pay €170 million in cash for a 20 percent stake in Eurosport.

The planned deal gives Discovery the option of lifting its stake in Eurosport to 51 percent in two years, and gives TF1 the option of then selling the remaining 49 percent to Discovery as well.

The two companies are also negotiating for Discovery to take 20 percent stakes in a range of TF1's smaller theme channels for €14 million.

An agreement is expected to be signed in the coming weeks, TF1 says.