Animal Planet to join HGTV? Discovery Communications and Scripps Networks' shares jump amid merger talks
Shares in cable television programmers Discovery Communications and Scripps Networks Interactive jumped late Tuesday in after-market trading following reports that the two companies were once again trying to merge.
The talks reflect an increasingly challenged landscape for cable programmers, particularly medium-sized companies like Discovery and Scripps that are dependent on pay-TV programming fees for much of their income. That source of revenue is under pressure as more consumers opt for so-called skinny bundles or cut the pay-TV cord altogether.
The two companies would make a good fit because both specialize in nonfiction programming. The added girth would give Discovery more leverage in carriage fee negotiations with such massive distributors as AT&T, Comcast, Charter Communications and Dish Network.
Shares in cable television programmers Discovery Communications and Scripps Networks Interactive jumped late Tuesday in after-market trading following reports that the two companies were once again trying to merge.
The talks reflect an increasingly challenged landscape for cable programmers, particularly medium-sized companies like Discovery and Scripps that are dependent on pay-TV programming fees for much of their income. That source of revenue is under pressure as more consumers opt for so-called skinny bundles or cut the pay-TV cord altogether.
The two companies would make a good fit because both specialize in nonfiction programming. The added girth would give Discovery more leverage in carriage fee negotiations with such massive distributors as AT&T, Comcast, Charter Communications and Dish Network.
