Eurosport, a pan-European television sports network has bought the rights to show the Olympics beginning in 2018.
The network, which is co-operated by French TF1 Group and Discovery Communications, paid €1.3 billion (£922 million) for the broadcasting rights. It may also mean that the BBC could lose coverage of the four-yearly event from 2022.
However, Discovery may lease back some of the rights in order to meet broadcasting regulations.
Currently, broadcasting rights for Europe are split up by country. The deal will become effective for most of Europe in 2018 and in France and the UK from 2022.
Because Ofcom lists the Olympics as a category A event, live coverage must be made available to free-to-air channels. Since Eurosport does not currently have such a channel, it will need to either acquire one or license coverage to another broadcaster.
In a statement, Discovery said it would broadcast a minimum of 200 hours of the Olympic Games and 100 hours of the Olympic Winter Games on free-to-air television.
Thomas Bach, president of the International Olympic Committee, said: "The revenue generated from this long-term partnership will be redistributed by the IOC across the Olympic Movement to support the development of sport around the world."
The next summer Olympics takes place in 2016 and will be held in Rio de Janeiro in Brazil. The 2020 event will take place in Tokyo, Japan.
Stock prices drop
Although the Olympic deal is good news for the company, Eurosport – along with other big European entertainment companies – saw market prices drop in early trading on Monday (June 29th) due to ongoing Greek debt crisis.
A series of developments over the weekend pushed the country closer to a possible exit from the euro zone and bailout talks had a knock-on effect across the markets.
The pan-European Stoxx Europe 600 index was down 2.3 per cent around 9:00 BST, while Spain's IPEZX 35 and Italy's FTSE MIB were also down more than 3.5 per cent.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.