Discovery Communications and Scripps Networks Interactive are once again discussing a merger, the Wall Street Journal (subscription required) reported late Tuesday.
Discovery owns such networks as the Discovery Channel, Animal Planet, OWN and TLC (which is working on a revival of Trading Spaces, again starring Paige Davis), while Scripps owns lifestyle channels such as HGTV, Cooking Channel, Travel Channel and a majority stake in Food Network. Internationally, Discovery owns Eurosport, while Scripps owns 50 percent of UKTV.
Shares of both programmers increased overnight on word of the deal.
The U.S. merger and acquisition is hot as programmers and distributors look for advantage in a challenging and crowded marketplace. Cable networks in particular are struggling as subscribers cut the cord. Together, Discovery and Scripps could demand higher carriage fees from cable operators and other distributors, reported the Los Angeles Times. They also could offer would-be subscribers a stand-alone “skinny bundle” composed mostly of their combined networks or a streaming service.
Viacom also has kicked the tires on Scripps, Reuters reported.
Scripps is valued at more than $10 billion after share prices rocketed up on Tuesday evening’s news, while Discovery has a market value of about $15.5 billion, says the New York Times.
Discovery’s largest individual voting shareholder is the ubiquitous John C. Malone, who can often be found behind deals such as this. Most recently, Malone guided the mergers of QVC and Home Shopping Network as well as Starz and Lionsgate.
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READ MORE: The Los Angeles Times, The New York Times
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