Discovery Communications announced that they are acquiring Scripps Networks Interactive in a $11.9 billion deal. This will give Discovery five of the top cable networks for women; over 20% of all US female viewers.
The deal comes as communication companies try to stay ahead of changing television viewing habits. The move is hoped to give the combined companies more clout when negotiating carriage in skinny bundles for non-cable viewing, as well as becoming a leading content provider across many platforms.
Our Media Buying Supervisor, LeEllen Smith weighs in saying “All is evolving rapidly in the communications business, and it remains to be seen if this effort to create both more clouted economies of scale is effective. Are the companies flailing about for answers as viewing habits change or making smart business moves?”
The day after this announcement, E.W. Scripps, a separate publicly traded company from Scripps Networks Interactive, finalized a deal to buy Katz Broadcasting’s local digital networks for under $302 million. E.W. Scripps owns 33 TV stations across the US, and in this deal will acquire the over-the-air networks Bounce, Grit, Escape, and Laff.
Read more on the acquisition Here