Discovery May Have to Sell Its TVN Company in Poland
In a surprising change of functions, Discovery is dealing with a prospective sale of its enterprise in Poland subsequent the parliamentary greenlight for a controversial new media bill.
Acknowledged as Lex TVN, the bill looks to prevent non-European possession of Polish media organizations. It was to start with proposed in July by Poland’s ruling conservative Law and Justice social gathering (PiS), which stated that Tv set and radio license holders shouldn’t be directly or indirectly managed by entities that are not in the European Financial Location.
The new media legislation puts a target squarely on Discovery, the U.S. entrepreneurs of Poland’s TVN Group, which operates the country’s most distinguished news channel, TVN24. Valued at all-around $2 billion, TVN represents America’s largest financial investment in Poland.
The bill was generating its way around the properties of parliament over the summer time. Even though the Senate moved to reject the monthly bill in September, it was voted via by the Sejm (decreased residence of parliament) on Friday, that means it has just 1 rung left — presidential approval — ahead of it gets to be law.
A spokesperson for Discovery instructed Selection: “The consequence of today’s surprise vote in the Polish Parliament should really be deeply concerning to any business investing in Poland and to any one who cares about democracy and independence of the press.
“Through this vote, Poland challenges immediately undermining the values that have connected Poland with Europe, and uprooting the basis of the Polish-American partnership. We now attraction to the President of the Republic of Poland, Andrzej Duda, to oppose this venture and reduce it from getting to be legislation.”
Sources reveal that Friday’s vote has come as a massive shock to Discovery.
The corporation made apparent in August that it is ready to fight to hold its company in Poland, vowing to just take legal motion to block the monthly bill less than the conditions of the longstanding bilateral trade treaty amongst the U.S. and Poland.
Discovery — which is established to merge with WarnerMedia in a mega-offer predicted to close mid-2022 — has so significantly operated in the nation by registering as a standalone business enterprise in just the European Union, therefore satisfying the requirements that stop non-European corporations from proudly owning around 49% in domestic media stores. The new regulation, even so, would crack down on any foreign ownership of Polish media and pressure Discovery to market 51% of its stake in TVN.
President Duda beforehand mentioned he requirements to evaluation the monthly bill just before deciding regardless of whether to veto or not. Variety understands that he has 21 days to get a decision.