SILVER SPRING, MD. & KNOXVILLE, TENN.—A deal has been struck that will see Discovery Communications acquire Scripps Networks Interactive. The transaction is valued at $14.6 billion.
Discovery and Scripps, as a single network, will produce 8,000 hours of original program a year, have 300,000 hours of library content and generate a combined 7 billion short-form video streams monthly. The combined company claims that it will has five of the top pay-TV networks for women, will account for more than 20 percent share of women watching primetime pay-TV in the U.S., and will have nearly 20 percent of ad-supported pay-TV audiences in the U.S.
The Scripps channels that will now be under the Discovery banner include HGTV, Food Network, Travel Channel, DIY Network, Cooking Channel, Great American Country, TVN, UKTV, Asian Food Channel and Fine Living Network.
The transaction is expected to boost Discovery’s presence both internationally in markets like the U.K., Poland and Latin America, as well as one social media and video platforms.
“This agreement with Discovery presents an unmatched opportunity for Scripps to grow its leading lifestyle brands across the world and on new and emerging channels including short-form, direct-to-consumer and streaming platforms,” said Kenneth W. Lowe, chairman, president and CEO of Scripps, who is expected to join Discovery’s board of directors upon closure of the deal.
The $14.6 billion deal is based on a cash-and-stock transaction at a value of $90 per share
The deal is subject to approval by Discvoery and Scripps’ shareholders, as well as the necessary regulatory approvals and other customary closing conditions. Discovery expects the deal to close by early 2018.
“We believe that by coming together with Scripps, we will create a stronger, more flexible and more dynamic media company with a global content engine that can be fully optimized and monetized across our combined networks, products and services in every country around the world,” said David Zaslav, president and CEO of Discovery.