Will have a new bidder......
Discovery set to join fight for Premier League rights
Discovery Communications has emerged as a potential challenger to BT and Sky in the upcoming battle for England’s Premier League football broadcasting rights.
David Zaslav, chief executive of the US television group, travelled to London on Wednesday to meet the Premier League,
Discovery and the Premier League declined to comment. The meeting was first reported by Bloomberg.
This year’s Premier League auction is one of the most eagerly anticipated in the competition’s history, with analysts expecting the value of the rights to increase by about 30 per cent to £4bn for the three-year period beginning with the 2016-17 season.
First-round bids for the UK broadcast rights are due on February 6. Seven packages of matches are at stake; Sky currently holds five packages and BT two.
Both companies have said they will bid in the auction, with Sky seeking to protect its pay-TV business and BT hoping to add more broadband customers.
Discovery Communications, whose largest shareholder is US billionaire John Malone, did not bid in the last auction in 2012. However, it has signalled that Europe is increasingly important to its growth.
The company paid about $370m to increase its stake in Eurosport to 51 per cent last year and tried to acquire motor racing’s Formula 1. In the UK it unsuccessfully bid for free-to-air broadcaster Channel 5 and then paid £275m for half of production group All3Media.
Last week, Discovery appointed sports rights specialist Peter Hutton as Eurosport’s chief executive. “[Our] focus is now on unlocking the full value of our must-have sports content,” said JB Perette, president of Discovery’s international division.
Discovery generated free cash flow of $1.2bn in the 2013 financial year, less than Sky and BT.
Virgin Media, which is owned by Mr Malone’s Liberty Global, has called on communications regulator Ofcom to intervene in the Premier League auction process, arguing that current arrangements lead to British consumers paying more to watch fewer games. Ofcom is due to rule on the complaint in March.
Discovery Communications has emerged as a potential challenger to BT and Sky in the upcoming battle for England’s Premier League football broadcasting rights.
David Zaslav, chief executive of the US television group, travelled to London on Wednesday to meet the Premier League,
Discovery and the Premier League declined to comment. The meeting was first reported by Bloomberg.
This year’s Premier League auction is one of the most eagerly anticipated in the competition’s history, with analysts expecting the value of the rights to increase by about 30 per cent to £4bn for the three-year period beginning with the 2016-17 season.
First-round bids for the UK broadcast rights are due on February 6. Seven packages of matches are at stake; Sky currently holds five packages and BT two.
Both companies have said they will bid in the auction, with Sky seeking to protect its pay-TV business and BT hoping to add more broadband customers.
Discovery Communications, whose largest shareholder is US billionaire John Malone, did not bid in the last auction in 2012. However, it has signalled that Europe is increasingly important to its growth.
The company paid about $370m to increase its stake in Eurosport to 51 per cent last year and tried to acquire motor racing’s Formula 1. In the UK it unsuccessfully bid for free-to-air broadcaster Channel 5 and then paid £275m for half of production group All3Media.
Last week, Discovery appointed sports rights specialist Peter Hutton as Eurosport’s chief executive. “[Our] focus is now on unlocking the full value of our must-have sports content,” said JB Perette, president of Discovery’s international division.
Discovery generated free cash flow of $1.2bn in the 2013 financial year, less than Sky and BT.
Virgin Media, which is owned by Mr Malone’s Liberty Global, has called on communications regulator Ofcom to intervene in the Premier League auction process, arguing that current arrangements lead to British consumers paying more to watch fewer games. Ofcom is due to rule on the complaint in March.



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