Discovery Communications Inc. (NASDAQ:DISCA) stock was down today on news of a deal with Scripps Networks Interactive, Inc. (NASDAQ:SNI).

The deal will have Discovery Communications Inc. paying $14.6 billion, including a net debt of $2.7 billion, for Scripps Networks Interactive, Inc. The deal values SNI stock at $90 per share. This represents a premium of 34% to the stock’s closing price on Tuesday, July 18, 2017, which was the last day before news of a deal started to spread.

Discovery Communications Inc. will be using a mixture of cash and stock to fund its purchase of Scripps Networks Interactive, Inc. This will have SNI shareholders receiving $63 per share in cash and $27 per share of Class C DISCA stock. The value of DISCA stock is based on its closing price from Friday, July 21, 2017.

Discovery Communications Inc. says that it is expecting the deal to acquire Scripps Networks Interactive, Inc. will result in $350 million in synergies. It is also expecting it to accretive to earnings per share and free cash flow in the first year after its completion.

If Discovery Communications Inc. and Scripps Networks Interactive, Inc. are able to make a successful deal, then it will leave SNI shareholders with a 20% stake in DISCA. The other 80% will be held by those already invested in the company.

Discovery Communications Inc. is expecting the deal with Scripps Networks Interactive, Inc. to close early in 2018. It will need approval from regulators, as well as from holders of DISCA stock and SNI stock, before this can happen.

DISCA stock was down 7% and SNI stock was up slightly as of Monday morning. SNI stock is also up 22% year-to-date.

As of this writing, William White did not hold a position in any of the aforementioned securities.