US media and entertainment giant Discovery Communications is still weighing whether to push ahead with its bid for beleaguered Ten Network, according to the media company's chief financial officer, Andrew Warren.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
"There are many of us that are taking a look," Mr Warren said in an interview at a conference in Barcelona. "There's certainly a rationale for why that asset can make sense, but again, it comes down to price" and governance.
"There's a lot of reasons why that deal may not make sense for us," he explained.
Discovery is mulling a joint offer for Ten with pay-TV operator Foxtel, Fairfax Media revealed last month. Rival Time Warner and private equity company Providence Equity Partners were also studying a bid for Ten, said people familiar with the matter.
Discovery generated 44.5 per cent of its $US5.5 billion ($6.4 billion) in revenue last year outside of the US, according to data compiled by Bloomberg.
The US media company is also among potential bidders for a controlling stake in Poland's second-largest television network TVN. Asked whether Discovery would pursue that deal, Mr Warren said the Polish TV broadcaster's "size doesn't scare me. It's really about seeing if there are synergies."
Vivendi's Canal Plus and Polish media conglomerate ITI Group said last month they have been approached by suitors for their jointly held 51 per cent stake in TVN and are considering their options.
The Polish network has a market value of about $1.6 billion ($1.85 billion), compared to Ten's $732.5 million.
"We know our organic story is a quite good organic story," Mr Warren said about Poland. "The question is, can we really accelerate that with an acquisition? Does it make us so much more of a player in that market that its worth that sort of allocation of capital?"
Commenting about Discovery's range of potential deals, Mr Warren also said that an investment in car-racing group Formula One was unlikely to take place. Discovery and Liberty Global had been in talks to buy a stake for months, people familiar with the matter have said.
"There are many reasons way it's an interesting asset and many why it doesn't make sense for us," Mr Warren said. "Discussions are still 'TBD,' but I think it's highly unlikely that something will happen."
Bloomberg
