Scripps Networks Interactive, Inc. (NASDAQ: SNI) shares busted out of their stalls early Wednesday, amid reports it was the target of a takeover.
Reports from the Wall Street Journal indicated that Discovery Communications Inc. (NASDAQ: DISCA) was seeking to merge with Scripps Networks, based out of Knoxville, Tennessee.
Scripps U.S. lifestyle portfolio comprises popular television and internet brands HGTV, DIY Network, Food Network, Cooking Channel, Travel Channel and Great American Country
International operations include TVN, Poland's premier multi-platform company; UKTV, an independent commercial joint venture with BBC Worldwide; Asian Food Channel, the first pan-regional TV food network in Asia; and lifestyle channel Fine Living Network. The company's global networks and websites reach millions of consumers across North and South America, Asia, Europe, Australia the Middle East and Africa.
Discovery’s U.S. portfolio includes Discovery Channel, TLC, Animal Planet, Investigation Discovery, OWN: Oprah Winfrey Network, Velocity, Science, American Heroes, Discovery Family and Destination America.
Discovery and Scripps have been in merger previously, including exploring a merger in late 2013 and 2014. Reuters reported Viacom has also held discussions to buy Scripps.
A report in Variety said Discovery is valued at $15 billion and Scripps at $8.8 billion
Traditional cable channel media companies are feeling pressure to grow by acquisition because of online competitors, according to a report from Bloomberg A combination of Scripps and Discovery would give the combined company a stronger hand in dealing with cable TV providers like Comcast Corp.
As the clock approached noon Wednesday, Scripps shares rocketed $9.14, or 13.6%, to $76.16, while Discovery shares gained 84 cents, or 3.2%, to $26.89.
