The cable TV giant is paying nearly $15 billion to acquire Scripp's largely female lifestyle channels such as Food Network and HGTV. Fred Katayama reports.
Discovery Communications is buying Scripps Networks for nearly $15 billion in a marriage of the sexes. It's snapping up Scripp's largely female lifestyle channels such as Food Network, HGTV, and Travel Channel and merging it with its mostly male oriented programming such as Discovery Channel, Animal Planet, and TLC. Scripps stock rose on the news; Discovery fell. Reuters correspondent Jessica Toonkel: SOUNDBITE: JESSICA TOONKEL, CORRESPONDENT, REUTERS, (ENGLISH) SAYING: "Wall Street's staying: OK, you guys are coming together. Bigger is better but how are you going to combat the bigger issues facing media companies, which is more people are cutting the cord and going to Netflix to watch their favorite shows?" Discovery says the combined company will have about 8,000 hours of original programming annually and 300,000 hours of library content. That vast programming slate will give the company leverage in negotiations with pay TV operators. The purchase will also help Discovery cut costs and broaden Scripps' reach into international markets. Discovery's third try was the charm. This time, it successfully outbid Viacom for Scripps.