Discovery increases its stake to 71%
Discovery (DISCA) has taken control of PSG (Play Sports Group) after raising its stake in the cycling-focused digital media company to 71%. Discovery previously owned a 20% stake in PSG.
PSG describes itself as the world’s top digital sports media company focused primarily on cycling and tri-sports. It’s the name behind cycling brands such as the Global Cycling Network and the Global Mountain Bike Network. PSG operates eight cycling video channels that reach more than 45 million viewers every month and have attracted more than 3.1 million subscribers.
Discovery seeking a larger piece of the $50 billion market
Discovery is betting that taking a controlling stake in PSG will allow it to create a global ecosystem of community, content, and events for cycling enthusiasts. At the end of the day, Discovery sees a deeper relationship with PSG allowing it to capture a bigger share of what it says is a $50 billion global cycling sports market.
The PSG team is set to join Discovery as the company sets up a new global cycling-focused division. PSG will operate as a subsidiary of Discovery.
Revenue jumped 57%
Discovery generated $2.6 billion in revenue in the third quarter of 2018, representing an increase of 57% YoY (year-over-year). The Walt Disney Company (DIS), Comcast (CMCSA), and Charter Communications (CHTR) grew their revenues 12%, 5.0%, and 4.2% YoY, respectively, in the third quarter. Revenue rose 4.1% YoY at Altice in the third quarter.