Discovery goes head to head with Polish govt to protect £2.1bn TV investment
American media giant Discovery is fighting to keep control of a television network it owns in Poland, an executive has said, as its £2.1bn investment is under threat from a new bill passed in parliament this week.
If the bill passes into law, no entity from outside Europe would be allowed to own more than 49 per cent of any media company.
Poland’s right-wing government says it is a way to defend national sovereignty and security, but critics see an authoritarian attempt to silence the most important source of independent TV news in the European Union member.
In practice the bill would only affect the ownership of TVN, a network first bought by another US company, Scripps Networks Interactive, for $2bn and later sold to Discovery in the largest ever American investment in Poland.
Jean-Briac Perrette, president and chief executive of Discovery International, said that TVN is now valued at around $3bn and the company has a fiduciary responsibility to shareholders to defend its interests.
“We have no intent to sell or leave,” said Perrette, who is based in London.
He urged the US, the EU and European nations to intervene, saying media independence and the survival of democracy are at a “tipping point” in a strategic region of central Europe.
“We’re seeing great support from the US government and great support from the EU,” he said. “The problem is, I fear, this (Polish) government is so ideologically dead set.
“So far, all the great support and the words clearly have not been sufficient to fend this off.”
Before the passing of the media bill on Wednesday, Poland’s broadcasting regulator also refused to renew a licence for the network’s all-news station, TVN24, which expires next month.
Legal action
On Thursday, the company announced it was initiating legal action at an international arbitration court over “arbitrary and discriminatory” treatment that it sees as part of a broader crackdown on free media.
Discovery accused Poland of violating a US-Polish investment treaty, and Mr Perrette said the company will have a strong case if the matter ends up in court.
He said Discovery has alternative plans to save its investment in Poland, but would not give any details.
There has been no Polish government response to the lawsuit.
To become law, the bill goes next to the opposition-controlled Senate, which has a month to examine it and can suggest changes but is too weak to block it. It then would return to the lower house for final passage, and then to the president for signing.
“This is turning in a very bad direction,” Mr Perrette said. “And now in the next 30 to 45 days, it gets decided.”