Discovery Inc. confirmed discussions with BT Group to create a new sport venture in the U.K. by combining its Eurosport business in the UK and Ireland with BT Sport.
A combined BT Sport and Eurosport U.K. would hold sport rights including the Olympic Games, Premier League, UEFA Champions League, UEFA Europa League, cycling Grand Tours, tennis Grand Slams, the winter sport World Cup season and Premiership Rugby.
The companies are already aiming for the proposed 50:50 joint venture to be up and running this year provided a definite agreement can be reached and regulatory approval can be obtained.
"We are excited about this opportunity with BT Group to offer consumers a stronger and simplified combined sport offering in the U.K. and Ireland, and, more broadly, to advance our strategy of bringing sports and entertainment to more consumers on the platform of their choice," said JB Perrette, president and CEO of Discovery Streaming & International, in a statement. "We are aligned with BT Group on a shared vision to maximize the value and appeal of our respective UK sport assets, and we look forward to concluding a deal in the coming weeks."
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Discovery acquired Eurosport in 2014 and said it now produces and distributes content to 130 million unique individuals a month across more than 200 markets and 20 languages outside the U.S.
Discovery is pursuing the proposed Eurosport merger while working to finalize its deal to acquire WarnerMedia from AT&T. That deal, which will give existing Discovery shareholders 29% ownership in the newly formed Warner Bros Discovery, earned full antitrust clearance from the European Commission in December.
"Approval from the European Commission is a key milestone toward completing our proposed transaction with AT&T," said Discovery CEO David Zaslav, who will be chief executive of the combined company. "Today we move one important step closer to creating Warner Bros. Discovery, a premier entertainment company that will be one of the world's leading investors in premium content and one positioned to serve consumers with what we believe will be the most complete content offering under one roof."