$14.6 billion understanding combines dual vital media companies
Silver Spring-based Discovery Communications has won a behest fight to squeeze Scripps Networks Interactive, a media association that operates renouned networks such as HGTV and a Travel Channel.
The dual companies announced Monday that Discovery acquired Scripps in a understanding valued during $14.6 billion in money and batch and Scripps’ debt. Discovery concluded to compensate $90 per share for Scripps—a reward of 34 percent of Scripps’ shares as of Jul 18. The transaction is approaching to tighten early subsequent year.
Discovery landed a understanding notwithstanding a competing offer for Scripps from Viacom, a owners of MTV and Nickelodeon. Viacom was reportedly charity all money for a HGTV owner.
“This is an sparkling new section for Discovery,” Discovery CEO and President David Zaslav pronounced in a statement. “Scripps is one of a best run media companies in a universe with superb assets, clever brands and renouned talent and formats.”
Zaslav total that mixing a companies will give a business a “global calm engine.”
“This agreement with Discovery presents an unmatched event for Scripps to grow a heading lifestyle brands opposite a universe and on new rising channels including short-form, direct-to-consumer and streaming platforms,” Scripps CEO and President Kenneth Lowe pronounced in a statement.
The company’s total network portfolio will embody Discovery Channel, TLC, Animal Planet, Investigation Discovery, Science, Eurosport, Food Network, Cooking Channel, DIY Network, HGTV, Travel Channel and other smaller networks means of producing 8,000 hours of strange programming per year.
Scripps is a mostly family-owned association formed in Knoxville, Tennessee.
The dual companies are approaching to be means to save $350 million in “cost synergies,” according to a announcement. The pierce brings together Scripps’ mostly womanlike assembly with a male-dominated assembly Discovery has developed, according to CNBC.
Media analysts are stating Monday a partnership will expected assistance Discovery contest opposite flourishing foe from streaming services such as Netflix and Amazon Prime, that have seen continued expansion as people finish normal wire contracts.
The proclamation Monday remarkable a total association will yield a “compelling opportunity” to grow new digital placement platforms, including on mobile and direct-to-consumer outlets.
“We perspective a understanding as among a many judicious in media,” RBC Capital Markets researcher Steven Cahall pronounced in a report cited by The Hollywood Reporter. “Both are rather comparatively sub-scale when traffic with distributors, and while their multiple might not put them on equal balance with a promote network or vital sports right owner, scale matters and should urge network carriage and associate negotiations.”
Scripps shareholders will accept $90 per share, with $63 per share in money and $27 in Discovery’s Class C Common shares, according to a announcement.