Discovery Buys Scripps for $11.9 Billion to Form Cable Giant
- Combined company will own cable channels Animal Planet, HGTV
- Deal could give Discovery more leverage in distribution deals
Discovery Buying Scripps for $90/Share
Discovery Communications Inc. agreed to buy Scripps Networks Interactive Inc. for $11.9 billion in a bet that uniting ownership of cable channels like Animal Planet and HGTV will help the company adapt to a fast-changing television landscape.
Discovery, one of billionaire John Malone’s key holdings, is grappling with shrinking audiences at some U.S. channels -- including the Discovery Channel and Animal Planet -- as consumers drop cable subscriptions and get more entertainment online from Netflix and others. Discovery Chief Executive Officer David Zaslav said Monday he plans to use Scripps programming to strengthen the company’s international reach and expand its distribution options, including creating more short-form video for social media.