Discovery Communications is going beyond sharks.
The owner of Animal Planet, TLC and other cable TV networks announced yesterday it paid $1.7 billion for 12 stations in four Scandinavian countries — dramatically stepping up its international footprint.
It is the largest purchase the company has ever made and comes at a time domestic growth is stymied.
At the same time, Discovery CEO David Zaslav announced the Silver Spring, Md., company was picking up a 20 percent position in Eurosport, a pan-Europe sports network much like ESPN, for $222 million.
It is Discovery’s first foray into sports.
The Eurosport deal comes with an option to acquire a controlling stake from owner, French broadcaster TF1, in two years.
The penetration rate of pay-TV in the US is 87 percent; in Western Europe it is 64 percent.
“Eurosport is the ESPN of Europe but it’s a more economic model,” Zaslav told The Post in an interview. “They have niche sports such as tennis and winter sports.”
Eurosport is currently in 59 countries. Discovery is expected to take over ad sales and distribution and is likely to bundle its existing networks with Eurosport to increase fees and its footprint.
“The attractive thing about sports is it’s live and DVR-proof and for people who want to see it, is an absolute must-have product for distributors,” Zaslav said.
Bernstein Research media analyst Todd Juenger views both deals in a positive light.
“There is only so much real estate in the world. Discovery just grabbed more share in an attractive geography in entertainment formats that can be fit into the Discovery sensibility,” Juenger said in an investor note yesterday.
“The acquisitions turn Discovery into one of the leading owners of content internationally,” he added.
Discovery shares closed yesterday at $60.82, up 1 percent. The stock has risen 48% this year.
The company has seen a 15% compound annual growth rate in international revenue over the past 10 years, according to Davenport & Co. analysis.
International accounts for around 36% of Discovery Communications’ overall revenue. In the six years since Zaslav has been in charge, the firm’s market cap has grown from $6 billion to $22 billion.