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Blog Exposure - US DoJ Okays Discovery Communications' Acquisition of Scripps Networks

Stock Monitor: Scripps Networks Interactive Post Earnings Reporting

LONDON, UK / ACCESSWIRE / March 01, 2018 / Active-Investors.com has just released a free research report on Discovery Communications, Inc. (NASDAQ: DISCA, DISCB, DISCK) ("Discovery"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=DISCA as the Company's latest news hit the wire. On February 27, 2018, the Company disclosed that the US Department of Justice (DoJ) has completed the investigation of the Company's acquisition of Scripps Networks Interactive, Inc. (NASDAQ: SNI) ("Scripps Networks"). The DOJ's approval brings Discovery closer to the completing the acquisition of Scripps Networks which was announced in July 2017. Register today and get access to over 1,000 Free Research Reports by joining our site below:


Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Discovery Communications and Scripps Networks Interactive most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:



Way forward

The Company announced the news while also reporting its Q4 2017 and full year 2017 financial results. With the closing of DoJ's investigation, the Discovery-Scripps Networks deal is expected to be completed by end of Q1 2018. However, the completion of the transaction is still dependent on Discovery receiving approval from regulators in Ireland and other closing conditions. In the meanwhile, both companies plan to continue their business operations as separate and independent units. Recently on February 06, 2018, the Discovery-Scripps Networks deal was approved by the European Commission with certain conditions.

Commenting on the completion of the investigation by the DoJ, David Zaslav, President and CEO of Discovery, said:

"We are pleased to have passed this significant regulatory milestone on our path to acquire Scripps Networks Interactive. The conclusion of the Department of Justice's investigation is an integral step toward closing our transaction. We look forward to combining these two great companies to the benefit of our enthusiast audiences around the world."

The Discovery-Scripps Networks deal

Discovery has announced the acquisition of Scripps Networks in July 2017 in a cash plus stock deal valued $14.6 billion including Scripps Networks' net debt of approximately $2.7 billion. Discovery had agreed to pay Scripps Networks' shareholders $90 per share of which $63 would be in cash and remaining $27 would be in Discovery's Class C Common shares. Scripps Networks' shareholders had the option of receiving their payment either fully in cash or in Discovery's stock or in the combination mentioned above. On completion of the transaction, Discovery's shareholders are expected to own approximately 80% stake in the merged entity and remaining 20% stake would be owned by Scripps Networks' shareholders. The shareholders of both companies had approved the deal in November 2017.

The deal is expected to create a global leader in the entertainment space with the combined Company having nearly 20% of ad-supported pay-tv viewership in the US. The deal is also expected to extend Scripps Networks' content to international audiences, increase opportunities for advertisers, and digital distribution partners. The deal is expected to result in cost synergies of approximately $350 million and is projected to be accretive to Discovery's adjusted EPS and free cash flow within one year of closing of the transaction.

Q4 2017 and full year 2017 Financial Results

The Company's revenues increased by 11% to $1.864 billion for Q4 2017, while the full year revenues increased by 6% to $6.873 billion. The company's free cash flow reduced to $430 million for Q4 2017, while the free cash flow for the full year was $1,494 million. The full year cash flow increased by 16% compared to FY16.

About Scripps Networks Interactive, Inc.

Headquartered in Knoxville, Tennessee, Scripps Networks is a leading developer of lifestyle-oriented content for television, Internet and emerging platforms. The Company's media portfolio includes popular lifestyle brands HGTV, DIY Network, Food Network, Cooking Channel, Travel Channel, and country lifestyle network Great American Country. The collective viewership of these channels is more than 190 million consumers each month and its global networks and websites reach millions of consumers across North and South America, Asia, Europe, Australia, Middle-East, and Africa.

About Discovery Communications, Inc.

Silver Spring, Maryland-based Discovery is a leading global media and communications Company which operates a portfolio of premium nonfiction, lifestyle, sports, and kids content brands including Discovery Channel, TLC, Investigation Discovery, Animal Planet, Science and Turbo/Velocity, as well as OWN: Oprah Winfrey Network in US., Discovery Kids in Latin America, and Eurosport, the leading provider of locally relevant, premium sports and Home of the Olympic Games across Europe. These channels are available in over 220 countries and territories, Discovery's programming reaches 3 billion cumulative viewers, who together consume 54 billion hours of Discovery content each year.

Stock Performance Snapshot

February 28, 2018 - At Wednesday's closing bell, Discovery Communications' stock declined 6.61%, ending the trading session at $24.32.

Volume traded for the day: 15.72 million shares, which was above the 3-month average volume of 6.06 million shares.

Stock performance in the last three-month – up 39.21%; previous six-month period – up 6.62%; and year-to-date - up 8.67%

After yesterday's close, Discovery Communications' market cap was at $8.92 billion.

Price to Earnings (P/E) ratio was at 19.13.

The stock is part of the Services sector, categorized under the CATV Systems industry.


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