Discovery And PGA Tour To Create First-Of-Its Kind International Golf Service

 (New York, NY) – To elaborate on the attached press release, Discovery, Inc. (Nasdaq: DISCA, DISCB, DISCK) will be hosting a 30 minute conference call for investors this morning at 8:00 a.m. ET to discuss the transaction.

  • Discovery, Inc. (“Discovery” or “the Company”) is investing $2 billion for the global PGA Tour rights across all platforms, outside the United States, for the years 2019 through 2030, as described in the attached press release.
  • Similar to the successful Olympics model, Discovery intends to monetize the rights through a combination of sublicensing, advertising, affiliate and digital subscription revenues.
  • The amount of the rights payments will increase over time, as additional rights in new countries become available. The estimated rights costs are approximately $50 million per year in 2019 and 2020, $100 million in 2021 and then ramping up through 2030.
  • Discovery is planning for additional marketing, operational and other expenses of around $20 to 30 million per year in the first 3 years as the Company builds out the product and platform.
  • Consequently, Discovery expects minimal start-up losses in the early years, as the Company builds and scales the global product, and then positive cash flows over the total life of the deal.
  • This investment in a global OTT platform further enhances Discovery’s pivot towards direct to consumer business models.

Conference Call Information

Discovery will host a conference call today at 8:00 a.m. ET to discuss the transaction. To listen to the call, PLEASE VISIT https://corporate.discovery.com or dial 1-844-452-2811 inside the U.S. and 1-574-990-9832 outside of the U.S., using the following passcode: DISCA.

Cautionary Statement Concerning Forward-Looking Statements

This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties and on information available to the Company as of the date hereof. The Company’s actual results could differ materially from those stated or implied, due to risks and uncertainties associated with its business, which include the risk factors disclosed in its Annual Report on Form 10-K filed with the SEC on February 28, 2018. Forward-looking statements include statements regarding the Company’s expectations, beliefs, intentions or strategies regarding the future, and can be identified by forward-looking words such as “anticipate,” “believe,” “could,” “continue,” “estimate,” “expect,” “intend,” “may,” “should,” “will” and “would” or similar words. Forward-looking statements in this release include, without limitation, statements regarding investing in the Company’s programming, strategic growth initiatives, and the timing and effects of the Scripps acquisition and related transactions. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.