Discovery in lead to acquire Scripps Networks for $12 bn

US media company Discovery Communications is in the lead to acquire US cable TV network owner Scripps Networks Interactive, sources said on Wednesday, in a deal likely to top $12 billion. The acquisition would bring together Scripps’ HGTV, Travel Channel and Food Network and Discovery’s Animal Planet and Discovery Channel, giving the combined company more pricing power with which to negotiate with cable TV operators such as Comcast and Charter Communications. Discovery has entered into exclusive talks with Scripps after prevailing over a rival offer from Viacom, another US media company, one of the sources said. While a deal could come as early as next week, negotiations are ongoing and no agreement is certain, the sources added. The exact value of Discovery’s offer could not be learned, but sources said it is a cashand-stock bid, comprising mostly cash, and valuing Scripps in the region of $90 per share. Scripps shares ended trading on Wednesday at $84.07.