TV

Scripps’ share price rises amid Discovery takeover rumor

Discovery Communications and Scripps Networks Interactive are both declining to comment on a Variety report claiming that Discovery is internally discussing the possibility of making a takeover approach for Scripps.
December 11, 2013

Discovery Communications and Scripps Networks Interactive are both declining to comment on a Variety report claiming that Discovery is internally discussing the possibility of making a takeover approach for Scripps.

The report, citing a source “with knowledge of the situation,” states that “the prospect of Discovery making a run at Scripps Networks was discussed Tuesday [December 10] at a Discovery board meeting,” and has been followed by an increase in SNI’s share price.

Shares rose 7.4% percent on the rumor, rising to US$80.55 a share by 9:42 a.m. EST. The climb represents the highest one-day rise for the company since May 2012.

The likelihood of Discovery actually taking over SNI has been dismissed by financial trade Bloomberg, which cites an analyst at Citigroup as saying that “a takeover of Scripps is unlikely because Discovery is more focused on international markets.”

SNI is the parent company to U.S. cable networks such as Food Network, HGTV and Travel Channel. A spokesperson for Discovery Communications declined comment when contacted by realcreen, as did a spokesperson from SNI.

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