Scripps Networks Interactive, Inc. (NASDAQ:SNI) shares were higher on rumors that two major media companies want to buy them.
Discovery Communications Inc. (NASDAQ:DISCA) and Viacom, Inc. (NASDAQ:VIA) have both reportedly inquired about merging with Scripps via an acquisition.
Discovery first contacted Scripps about merging with the company in 2014, and it has reportedly sought such a move once again this year. Scripps has a market value of about $8.7 billion, while Discovery is worth $15 billion.
Meanwhile, Viacom — worth $14.5 billion — is also interested in a potential move for the media company. The company is seeking a pay-for-programming TV service that would cost $10 to $20, and it is seeking a partner for the launch, also contacting Discovery for a potential partnership.
A merger does not guarantee that the combined company would have the networks from both sides on their new streaming services, but there would be a financial impetus to combine two of these companies. It is unclear how exactly both parties would benefit from such a merger.
Discovery’s lineup includes the Discovery Channel, TLC
, Animal Planet and the Oprah Winfrey Network. Scripps owns HGTV, Food Network and the Travel Channel.
All three of these companies lack sports programming, which is a must-have for media companies nowadays.
SNI stock up 13.8% Wednesday. DISCA shares rose 3.4% and VIA is up 2.1%.