LLC Continues to Hold Stake in Discovery Communications, Inc. (DISCA)

Discovery Communications has bought Scripps Networks Interactive. owner of HGTV and the Food Network. Andrew Harrer  Bloomberg

Scripps, which operates such channels as HGTV, Travel Channel and Food Network, and Discovery, whose networks include Discovery Channel, Animal Planet, TLC and OWN, also reported their second-quarter financials on Monday, earlier than expected, and Wall Street started chiming in on all the news. The companies estimate the deal will create cost savings of about $350 million.

Advance Publications, the privately held media company owned by the Newhouse family, owns a large share of Discovery stock. The company has a market capitalization of $11.87 billion, a price-to-earnings ratio of 14.02 and a beta of 1.60.

"While we believe the two companies are likely better positioned together, rather than apart, the longer-term issues facing the industry still remain", noted analyst John Janedis of Jefferies.

As a result of "the ratings and impression softness in the USA market", Scripps cut its full-year 2017 guidance for revenue growth to 4 percent from 6 percent and for segment profit to no change from 3 percent growth. Together, the merged companies will operate almost 20% of cable viewership in the U.S.

Firms such as Amazon and Netflix are increasing competition in the sector. The telcos are scrambling to offer live TV streaming bundles in an effort to shore up pay TV subscriber losses, while the networks that had once relied on pay TV distribution to reach viewers are now having to negotiate new packages with the streaming services like Sling TV, Hulu, Sony's Vue, YouTube TV and others.

Announced earlier today, the combination will dominate the U.S. ad-supported pay-TV market, with a 20 per cent market share.




"The transaction supports and accelerates Discovery's pivot from a linear TV-only company to a leading content provider across all screens and services around the world", David Zaslav, Discovery's chief executive, told investors.

Added Janedis: "1) Viewership on TV, and more so, cable networks continues to decline". Scripps owns strong positions in global markets, which will provide Discovery with access to the United Kingdom and Poland. Scripps chairman Kenneth Lowe will join the Discovery board following the takeover.

The deal requires regulatory and shareholder approvals.

After the transaction is completed, Scripps' shareholders will own approximately 20 percent of Discovery and Discovery's shareholders will own approximately 80 percent. It had tried unsuccessfully twice before to buy Scripps.

Viacom had been mooted as a potential buyer of Scripps in recent weeks, but reportedly dropped out of the bidding last week.

Related news:

Hot News

isis-killer-beheading-video-story-top Abu Dujana killed in encounter
Aug 01, 2017 - 22:57
On July 30, internet services were snapped in Pulwama after two Hizb-ul-Mujahideen terrorists were gunned down in Tahab area. Abu is the third top militant leader killed since past year following Hizbul Mujahideen leaders Burhan Wani and Sabzar Bhat.

isis-killer-beheading-video-story-top Jeanne Moreau, Star Of 'Jules Et Jim' Dead At Age Of 89
Aug 01, 2017 - 22:56
She also had high-profile relationships with Tony Richardson, Louis Malle, François Truffaut, Pierre Cardin and Miles Davis. She was born in Paris on January 23, 1928, to a French father and English mother who danced at the Folies-Bergere.

isis-killer-beheading-video-story-top Nitish decision unfortunate, says Sharad Yadav
Aug 01, 2017 - 22:56
The signals are loud and clear that he is ready to divorce JD (U), though Yadav himself stopped short of spelling it out. On 27 July, RJD Chief Lalu Prasad had tweeted the Bihar chief minister's affidavit filed with his nomination papers.

isis-killer-beheading-video-story-top Sony net profit soars in April-June quarter
Aug 01, 2017 - 22:54
You can check the out the graph below from the full press release , which compares the results from the final quarter of 2016. Income decreased significantly due to the lack of any highly profitable first party game launched during the quarter.

isis-killer-beheading-video-story-top Donald Trump pushes out Greek-American Reince Priebus
Jul 31, 2017 - 01:09
Scaramucci asked Lizza who had leaked the information and then threatened to fire the entire White House communications office. Priebus had been a frequent target of rumours about his job security amid infighting and confusion within the White House.

isis-killer-beheading-video-story-top Pokemon Go Fest's blunders result in class-action lawsuit
Jul 31, 2017 - 01:09
The maker of Pokémon GO and sponsor of the festival, Niantic , has apologized and offered refunds. The LEGENDARY POKEMONS are extremely rare and require at least 10-20 people to catch them.

isis-killer-beheading-video-story-top Two days in Phoenix, two babies dead in hot cars
Jul 31, 2017 - 01:07
According to Phoenix Fire Department, the child was in the vehicle for about two hours before he was found by his mother. A tragic moment took place Friday where a 7-month-old baby was found dead in a hot auto .

isis-killer-beheading-video-story-top Jose Mourinho rules out potential move to Galatasaray for Marouane Fellaini
Jul 31, 2017 - 01:06
Fellaini made huge strides last season in turning around his United career, winning over manager Mourinho with his vital contributions from the bench.

isis-killer-beheading-video-story-top Putin in Finland on centenary of independence from Russian Federation
Jul 30, 2017 - 01:26
Niinisto warned that any new sanctions would affect soon other countries and therefore there are talks within the European Union. According to Putin, the investigations were not real investigations, as they are lack of a full study of the situation.

isis-killer-beheading-video-story-top LaVar Ball responds to Shaq's diss track
Jul 30, 2017 - 01:25
In case you forgot, Heat president Pat Riley traded O'Neal during the 2007-08 season to the Phoenix Suns after just 33 games . Eventually, Adidas chose to replace the referee - a NCAA Division I women's basketball official - with someone else.

Paul Ryan's Border Tax Is Dead In The Water
Jul 30, 2017 - 01:25
Republican leadership has proposed a compromise: $200 billion in cuts. The joint statement contained little clues about that path forward.

isis-killer-beheading-video-story-top Russian Federation orders U.S. to cut diplomatic staff
Jul 30, 2017 - 01:23
The House of Representatives and the Senate have voted for another round of sanctions against Russian Federation this week. A White House official said the bill would be reviewed, "but we strongly support sanctions against all three countries".

isis-killer-beheading-video-story-top Paul di Resta to replace ill Felipe Massa at Hungarian Grand Prix
Jul 30, 2017 - 01:17
The team's Reserve Driver Paul di Resta was confirmed as Felipe's replacement for the remainder of the race weekend. The last of his 58 F1 races was the Brazilian GP in November 2013.

isis-killer-beheading-video-story-top Giants owner admires Odell Beckham's top-paid aim
Jul 29, 2017 - 00:55
Needless to say, Beckham has no chance of being the highest-paid player in the league. I'm here to get better each and every day.

isis-killer-beheading-video-story-top Supreme Court no to rape victim, 10, aborting foetus
Jul 29, 2017 - 00:54
The SC dealt with two cases on Friday, the other one being from Mumbai where it gave the go-ahead for termination of pregnancy. Terminations of pregnancies are not allowed after 20 weeks unless medical experts rule that the mother's life is in danger.