Actionable news
All posts from Actionable news
Actionable news in DISCA: Discovery Communications, Inc.,

Discovery CEO on Scripps: We Could Create a Terminal Value Tunnel That Makes Us a Big Winner

It's a risk but Discovery Communications Inc. (DISCA) is going to take it.

After weeks of takeover speculation, Discovery said Monday, July 31, it has reached agreement with Scripps Networks Interactive Inc. (SNI) to buy the owner of HGTV, DIY Network and Food Network for $90 a share. The cash-and-stock deal is valued at $14.6 billion including $2.7 billion in assumed debt. The companies anticipated they would close the transaction early next year.

For owners of Scripps Networks, the deal is a windfall. The takeout price -- $63 in cash and $27 in Class C Discovery stock -- is 34% higher than where shares of the cable network company closed on July 18, just before news of the talks sent the stock soaring. By agreeing to be acquired, Scripps CEO Ken Lowe secures a deal that caps more than 30 years at the once modest TV station and newspaper company that grew a set of cable networks that was spun out in 2007.

Those networks, led by HGTV and Food Channel, have had great success attracting...