Scripps Networks Interactive to acquire controlling interest in Travel Channel
06 Nov 2009
Scripps Networks Interactive, owner and operator of the Food Network and HGTV lifestyle television networks, agreed yesterday to acquire from Cox Communications a controlling interest in the Travel Channel in a deal valuing the cable-television network at $975 million.
Cincinnati-based Scripps Networks Interactive is one of the leading developers of lifestyle-oriented content for television and the Internet, where on-air programming is complemented with online video, social media areas and e-commerce components on companion Web sites and broadband vertical channels.
The company's media portfolio includes, Lifestyle Media, with popular lifestyle television and internet brands HGTV, Food Network, DIY Network, Fine Living Network (FLN) and country music network Great American Country; and Interactive Services, with leading online search and comparison shopping services BizRate and Shopzilla.
The Travel Channel is a popular leisure channel featuring documentaries and airs shows related to travel and leisure around the US and throughout the world. Programming has included shows in African animal safaris, tours of grand hotels, and visits to significant cities and towns.
Scripps Networks Interactive will pay $181 million in cash to a newly created partnership with Atlanta-based Cox Communications and own 65 per cent of the Travel Channel, while Cox Communications will retain a 35-per cent minority stake in the network.
Cox will contribute the Travel Channel, valued at $975 million and the partnership, in turn, will take on $878 million in third-party debt that will be guaranteed by Scripps and indemnified by Cox, with the proceeds to be distributed to Cox.
The transaction will result in the partnership having about $696 million in net debt.
