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