Discovery Communications, France's TF1 in Alliance Talks
A deal would focus on creating "value for both companies across their numerous complementary business activities in three key areas."
Cable networks company Discovery Communications said Tuesday that it has entered into exclusive negotiations about a strategic alliance with French broadcaster TF1 Group that would include investments by Discovery in several businesses.
A potential deal would be "intended to create value for both companies across their numerous complementary business activities in three key areas," the companies said.
The three areas, on which Discovery could end up spending money, are: driving the growth of Eurosport, enhancing both companies' pay TV offerings in France, and "developing a mutually beneficial content production relationship."
The companies declined to comment further.
Discovery Communications, led by CEO David Zaslav, has seen its international business become a key growth driver. Zaslav has said he spends around 40 percent of his time abroad.
He recently also said that his team's first priority for acquisitions and other deals is in international markets. Discovery has been rumored to be involved in the bidding for the Nordic business of ProSiebenSat.1 and have made the round of the final three suitors in that auction.
The company didn't immediately say if it was still in the running for that business.
Email: Georg.Szalai@thr.com Twitter: @georgszalai