Discovery fights Poland's Foreign Ownership Law

Discovery Inc. has officially taken legal action against the Polish government following a favorable vote for a contentious media law, citing a violation of the bilateral investment treaty between the United States and Poland.

The bill, which narrowly passed in the lower house of parliament on Wednesday, would prevent non-European companies from owning any Polish media. In practice, it would push the American-owned company Discovery out of the country.

If the bill becomes law, Discovery, which has the largest U.S. investment in Poland, would have to sell its controlling stake of TVN Group valued at about $3 billion.

To officially become law, the bill still needs to be passed in the upper house of parliament and signed by President Andrzej Duda who is not expected to veto the law.

Opponents of the bill assert this is a direct attack against freedom of press and is squarely targeted towards Discovery’s TVN Group, which includes TVN24, Poland's leading independent broadcast news channel known to be critical of the nationalist government. The channel reaches about 17 million Polish people.

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“Discovery has successfully operated and invested in Poland for nearly 25 years, making us now one of the biggest international investors and employers in this incredible country,” said JB Perrette, president and CEO of Discovery International. “We are deeply committed to safeguarding our investment in Poland and its people, defending the public’s interest in independent media and the rights of freedom of expression.”

Prime Minister Mateusz Morawiecki has defended the bill, asserting the law is necessary for national security.

Nonetheless, Polish people on Tuesday gathered in large crowds throughout the country chanting “Free media!”

Leading up to the vote, TVN24’s routine broadcast license renewal has been refused by Poland's National Broadcasting Council. The current license will expire Sept. 26 risking the immediate shutdown of the network.

This news comes amid anticipation of Discovery’s $43-billion takeover of WarnerMedia, which would make it one of the world’s most powerful media companies. The deal is expected to close mid-2022.