Scripps Networks Interactive, Inc. (SNI) Up on Discovery Merger Buzz

Scripps Networks Interactive, Inc. (NASDAQ:SNI) shares were higher on rumors that two major media companies want to buy them.

Scripps Networks Interactive, Inc.(SNI)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 ChannelTLCAnimal Planet and the Oprah Winfrey Network. Scripps owns HGTVFood 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%.

Article printed from InvestorPlace Media,

©2021 InvestorPlace Media, LLC