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Discovery, TEN join forces to form automotive media company

Discovery Communications Inc. joined forces with TEN: The Enthusiast Network to form an automotive media company in the U.S.

The venture, to be called TEN: A Discovery Communications Co. upon closing of the transaction, will bring together Discovery-owned Velocity (US) and TEN's entire automotive digital portfolio, direct-to-consumer, social and live event portfolio, including industry leading brands Motor Trend, Hot Rod, Roadkill, Automobile and more than 20 others.

The service will be available on devices through Apple Inc.'s iOS and Apple TV, Alphabet Inc.-owned Google Inc.'s Google Play and Chromecast, Roku Inc., Microsoft Corp.'s Xbox and Inc. devices.

Upon the completion of the transaction, the venture will offer advertisers a combined reach of more than 150 million automotive fans and car buyers. While TEN's print businesses are not included in the venture, the agreement will allow cross-promotion between the print portfolio and the venture for advertising.

Discovery Communications Chief Commercial Officer Paul Guyardo will serve as CEO, and chairman of the new venture's board, in addition to his existing responsibilities. Leading the new venture will be Scott Dickey, president of TEN, and Bob Scanlon, who will be appointed president of Velocity and TEN Video Content.

With plans to add Velocity content to TEN's Motor Trend OnDemand subscription video-on-demand service, the new joint venture will mark Discovery’s first direct-to-consumer push in the U.S, according to an Aug. 3 news release.

In the future, TEN has an option to put its stake in the venture to Discovery at fair market value. Discovery will have an option to acquire 100% of the new venture.

TEN is a portfolio company of GoldenTree Asset Management LP.