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Discovery Communication wins bid to buy Scripps Networks {{tl|tasks|news|re-review}} {{date|August 3, 2017}}  [[File:Discovery Scripps Networks Interactive.JPG|thumb|250px|Logo of Discovery Communications and Scripps Networks Interactive {{image source|Scripps Networks Interactive}}]] {{w|Discovery Communications}} have reached a deal to purchase {{w|Scripps Networks Interactive}} for [[US$]]14.6 billion on July 31, 2017. The deal combines two TV cable channel companies with mostly lifestyle programming with both having strong brands. {{w|John Malone}}, a major Discovery stockholder, has recommended content industry consolidation. [[Viacom]] was in the bidding for Scripps Networks until the fourth week of July 2017, leaving Discovery as the final bidder. The controlling Scripps family members and {{w|Advance Publications|Advance/Newhouse Programming Partnership}} agreed to vote for the Discovery purchase. Advance/Newhouse is also a major Discovery shareholder. Discovery plans to pay for the purchase with stock and cash with $63 per share in cash and $27 per share in stock while taking on Scripps' debt. Scripps Networks shareholders will own 20% of Discovery after the transaction close in early 2018. Kenneth Lowe, chair, president and CEO of Scripps, will join the board of directors after the merger is closed. Twenty percent of ad-supported paid U.S TV will be flowing through Discovery-Scripps according to the two companies. The combined company will run the top five female-viewed pay TV channels ({{w|Discovery Channel}}, {{w|Investigation Discovery}}, {{w|TLC (TV network)|TLC}}, {{w|Food Network}} and {{w|HGTV}}) having a 20% share of US primetime female viewers. Additionally, 8000 hours of original programming per year over its 50 channels produced add to a combined library of about 300,000 hours. The merger is expecting $350 million in cost savings, while allowing the Scripps channels more international opportunities, by taking advantage of Discovery's greater international reach. The additional channels give Discovery more potential in direct-to-consumer and internet delivered TV services like Hulu and PlayStation Vue. Market analysts have given mixed responses. RBC Capital Markets analyst Steven Cahall wrote in a report, "We view the deal as among the most logical in media. Both are somewhat relatively sub-scale when dealing with distributors, and while their combination may not put them on equal footing with a broadcast network or major sports rights owner, scale matters and should improve network carriage and affiliate negotiations." He also indicated: "Investors have viewed consolidation among smaller players as an eventual inevitability." MoffettNathanson analyst Michael Nathanson wrote a recent report, which stated: "While there will likely be ample cost synergies, international revenue opportunities and improved relative scale, we don’t think this merger will fundamentally alter the long-term prospects of these companies." He also indicated that Discovery already has too many channels to defend, but would give them the possibility of forming a non-sports channel programming bundle price under $15 per month. Nathanson changed his rating on Scripps to Neutral from Sell and continued his sell rating for Discovery. "Although we still don't believe that either combination [Discovery-Scripps or Viacom-Scripps] solves the long-term affiliate fee 'issue,' our math at least suggests that Discovery would be the better buyer of Scripps — both from a pro forma leverage and an accretion standpoint," stated Wells Fargo analyst Marci Ryvicker. The {{w|E. W. Scripps Company}} spun off its cable channel based telecasting unit, {{w|Scripps Networks Interactive}}, in 2008. The Scripps Company is currently pursuing the purchase of {{w|Katz Broadcasting}} that marks a return to the telecasting segment of broadcasting. The E.W. Scripps family controls both Scripps entities. {{haveyoursay}} ==Related news== *{{wikinews|title=Scripps Company agreed to purchase Katz networks|date=August 2, 2017}} == Sources == *{{source |url = http://www.broadcastingcable.com/news/local-tv/ew-scripps-buys-katz-networks-302m-deal/167592 |title = E.W. Scripps Buys Katz Networks in $302M Deal |author = Diana Marszalek |pub = Broadcasting & Cable |date = August 1, 2017 }} *{{source |url = http://www.hollywoodreporter.com/news/discovery-acquire-scripps-networks-146-billion-1022433 |title = Discovery to Acquire Scripps Networks for $14.6 Billion |author = Georg Szalai |pub = Hollywood Reporter |date = July 31, 2017 }} *{{source |url = https://www.usatoday.com/story/money/2017/07/31/cable-tv-network-merger-discovery-acquire-scripps-networks-interactive-11-9-b/524572001/ |title = Cable TV network merger: Discovery to acquire Scripps Networks for $11.9B |author = Nathan Bomey and Mike Snider |pub = USA Today |date = July 31, 2017 }} *{{source |url=http://www.knoxnews.com/story/money/business/2017/07/26/scripps-family-considers-offers-knoxville-based-scripps-networks-interactive/511637001/ |title=Scripps family considers offers for Knoxville-based Scripps Networks Interactive |author = Jack D Lail |pub = Knoxville News Sentinel |date = July 26, 2017 }} *{{source |url = http://www.crainsnewyork.com/article/20101213/FREE/101219950 |title = Advance Publications waving around $500M |author = Matthew Flamm |pub = Crains New York Business |date = December 13, 2010 }} [[Category:United States]] [[Category:Television]] [[Category:Economy and business]] -------------------------------------------------------------------------------------------------- Scripps Company agreed to purchase Katz networks {{tasks|news|re-review}}  {{date|August 2, 2017}}  [[File:Katz-Broadcasting.jpg|thumb|250px|Logo of Bounce TV and Katz's three networks: Escape, Grit and Laff {{image source|Katz Broadcasting}}]] The {{w|E. W. Scripps Company}} announce on Tuesday, August 1st, the purchase of {{w|Katz Broadcasting}} and its three networks plus {{w|Bounce TV}}, for $292 million, acquiring the other 95% of Katz. {{w|Hart–Scott–Rodino Antitrust Improvements Act|Anti-trust review}} and other conditions expected to complete such that the purchase will finalize by October 2. The deal values the networks at $302 million. About $50 million in cash on hand and $250 million in new debt will fund the deal. In 2018, the new market segment, broadcast networks, is expected to add $180 million in revenue and about $30 million in segment profit. Bounce has overlapping ownership and management with Katz Broadcasting, which has 130 employees. {{w|Raycom Media}} and Al Haymon are investors having stakes in both entities. All of the networks are Nielsen rated and each cover 80% of the US. Network executive and founder Jonathan Katz will continue to lead the networks after the deal closes. The Katz business unit plans to stay at its current headquarters in the Atlanta, Georgia area. Katz leads Bounce Media, LLC as {{w|Chief operating officer|chief operating officer}} and Katz Broadcasting as chief executive officer. Katz was previously at Turner Broadcasting as a programming executive. Katz Broadcasting's three networks are {{w|Escape (TV network)|Escape}}, {{w|Grit (TV network)|Grit}} and {{w|Laff (TV network)|Laff}}. Escape and Grit launches in 2014 and are gender targeting network. Grit uses Western, war and action films to attract men, while Escape takes investigation and mystery to bring in women. While Laff is a comedy network that launched on tax day, April 15, 2015. Scripps Company affiliate 13 of its television stations with Laff at its launch in addition to its 5% stake in the Katz business. Bounce Media launched Bounce TV, African-American focused network in 2011 with former Turner employee, Ryan Glover, and additional investors {{w|Martin Luther King III}} and former U.N. ambassador {{w|Andrew Young}}. Glover is the president. Bounce also roll out a companion {{w|Over-the-top content|over the top}} service Brown Sugar in November 2016. Bounce leads {{w|Digital subchannel|subchannel}} networks with an original programming slate with shows like ''{{w|Mann & Wife}}'' and ''{{w|Saints & Sinners (2016 TV series)|Saints & Sinners}}'' series. Haymon's Premier Boxing Champions is the network's source for live sports. Broadcasting and Cable quote Scripps COO Adam Symson as saying, "Television is changing as over-the-air, cable and OTT all come together into a more seamless viewing experience for consumers. With national reach and scale, the Katz networks represent valuable real estate, consistent with our strategy to remain a leader in the evolving TV landscape.” While MarketWatch Pulse quote Scripps Chief Executive Rich Boehne as saying, "In today's fragmented television ecosystem, a growing number of viewers are consuming content from new over-the-air networks as a complement to over-the-top services." MarketWatch also quoted Boehne as saying: "The entrepreneurs at Katz were among the first to take full advantage of this resurgence in over-the-air viewing. We were early investors in the company, and it's a strategy and team we know well." This purchase marks a return to the telecasting segment of broadcasting. The Scripps Company spun off its cable channel based telecasting unit, {{w|Scripps Networks Interactive}}, in 2008. The E.W. Scripps family controls both Scripps entities. {{haveyoursay}} ==Related news== *{{wikinews|title=Discovery Communication wins bid to buy Scripps Networks|date=August 2, 2017}} == Sources == *{{source|url=http://www.multichannel.com/news/content/ew-scripps-buys-katz-networks-302m-deal/414337 |title=E.W. Scripps Buys Katz Networks in $302M Deal |author=Diana Marszalek |pub=MultiChannel |date=August 1, 2017 }} *{{source |url = http://www.broadcastingcable.com/news/local-tv/ew-scripps-buys-katz-networks-302m-deal/167592 |title = E.W. Scripps Buys Katz Networks in $302M Deal |author = Diana Marszalek |pub = Broadcasting & Cable |date = August 1, 2017 }} *{{source |url = http://www.foxbusiness.com/markets/2017/08/01/ew-scripps-buys-4-networks-from-katz-broadcast-for-22-million.html |title = E.W. Scripps Buys 4 Networks From Katz Broadcast For $292 Million |author = Trey Williams |pub = Fox Business |date = August 1, 2017 }} *{{source |url = http://www.scripps.com/press-releases/1079-scripps-acquires-four-fast-growing-audience-targeted-television-networks |title = Scripps acquires four fast-growing, audience-targeted television networks |author = Carolyn Micheli |pub = E.W. Scripps Company |date = August 1, 2017 }} *{{source |url=http://www.knoxnews.com/story/money/business/2017/07/26/scripps-family-considers-offers-knoxville-based-scripps-networks-interactive/511637001/ |title=Scripps family considers offers for Knoxville-based Scripps Networks Interactive |author = Jack D Lail |pub = Knoxville News Sentinel |date = July 26, 2017 }} *{{source |url=http://www.tvnewscheck.com/article/89135/ota-the-bedrock-of-katzs-growing-diginets/page/1 |title=OTA The Bedrock of Katz's Growing Diginets |author =Harry A. Jessell |pub = TVNewsCheck |date=October 13, 2015}} *{{source |title=Exclusive: Comedy Multicast Net Launching on ABC, Scripps |url=http://www.broadcastingcable.com/news/currency/exclusive-comedy-multicast-net-launching-abc-scripps/137199 |author=Jon Lafayette |pub=Broadcasting & Cable |date=January 18, 2015 }} *{{source |title=Exclusive: Bounce TV Exec Plans Two New Channels |url=http://www.broadcastingcable.com/news/currency/exclusive-bounce-tv-exec-plans-two-new-channels/130235 |pub=Broadcasting & Cable |date=April 3, 2014 }} [[Category:Georgia (U.S. state)]] [[Category:United States]] [[Category:Television]] [[Category:Economy and business]]