Yesterday, Scripps Networks Interactive Inc. (SNI) has entered into an agreement to buy the U.K.-based Travel Channel International Ltd. (TCI) for a total consideration of approximately $103 million. The deal is expected to be closed by the second quarter of 2012, subject to the regulatory approval.
TCI distributes Travel Channel brand in 20 different languages in 91 countries across Europe, Africa, Middle East and Asia Pacific regions. Further, the company made affiliate agreement with nearly 850 distributors of the above mentioned countries. In January 2012, Scripps Networks acquired 65% stake of the U.S. Travel Channel Network from Cox Communications. Acquisition of the controlling stake in the Travel Channel has lifted Scripps Networks to the position of global market leader in lifestyle programming. We believe successful integration of the U.S. Travel Channel and the U.K. Travel Channel networks will place Scripps Networks as an undisputed leader in this segment.
Scripps Networks has threevery powerful and completely distinct programming categories, namely home, food, and travel. In the U.S., Travel Channel, which is a high-margin business, is among the top 10 cable networks in terms of primetime ratings growth that can be incorporated into other platforms like Internet, mobile, and social media applications. Scripps Networks is currently redefining its variety of contents for TV and other media platforms.
The proposed acquisition of the TCI is the second major expansion drive by Scripps Networks in the U.K. In August 2011, the company acquired 50% stake of the UKTV from Virgin Media Inc. (VMED). The remaining 50% is controlled by the British Broadcasting Corp.
To read this article on Zacks.com click here.
Zacks Investment Research
