Taking A Look At Discovery Communications

It is the desire of most firms to achieve growth. One strategy that is commonly used by companies to expand their presence in markets is acquisitions. It is common practice for firms to buy stakes in other companies that offer similar or related products. In 2014, Discovery Communications increased its stake in Eurosport from 20% to 51% (Prior par. 2). The purchase of stake allowed Discovery Communications to gain controlling authority in the affairs of Eurosport. This purchase was followed by another in 2015 when Discovery Communications bought the remaining 49% stake in Eurosport (Discovery Communications par. 1). This purchase effectively placed Discovery Communications in full control and gave it full ownership of Eurosport. The stake purchase

Discovery Communications has its base in the United States. This company broadcasts content that it creates itself and others that it purchases broadcasting rights from third parties. Discovery Communications has always sought to expand its presence in the European market (Garrahan par. 5). The company also wished to broaden the variety of content that it broadcasts. These objectives set the stage for the acquisition of Eurosport. Eurosport is primarily engaged in broadcasting sports programs. The company is the chief broadcaster for such sports programs as the UEFA Champions League, Bundesliga and the Europa League, among others (Discovery Communications par. 5). Eurosport offered Discovery Communications the perfect tool to make in-roads into the European market. Apart from enabling Discovery Communications to access the European market, the acquisition would allow Discovery Communications to offer its viewers a wider range of

This decision seems to have been driven purely by the desire by Discovery Communications to enter the European market. It is also clear that both companies supported the acquisition. A search for any conflicts or competing viewpoints among the leaders of the companies does not turn up any relevant results. This can be taken to mean that the acquisition received the full backing of the two companies. Assuming that this is true, it can be expected that Discover Communication’s acquisition of Europe will prove to be a wise investment when the increase in the former company’s share price and profits is