Shares of Scripps Networks Interactive (SNI) surged more than 7% in Wednesday pre-market trading after a report indicated that the company could be the target of a takeover bid from a rival cable channel operator.
A source tells Variety that the prospect of a potential bid for Scripps was raised during a meeting of Discovery Communications’ (DISCA) board earlier this week. Scripps has been the subject of acquisition talk in the past. Several years ago, Scripps held merger talks with Disney (DIS). The company has also been considered by Fox (FOXA) and Comcast’s (CMCSA) NBCUniversal, but no deal ever materialized.
With a portfolio of popular cable channels, including the Food Network, the Travel Channel and HGTV, Scripps could expand Discovery’s existing range of lifestyle-oriented channels. Scripps, which is controlled by the heirs of E.W. Scripps, has a market capitalization of about $11 billion.
Neither company would provide Variety with a comment on the report.