Discovery Communications has acquired Scripps Networks Interactive, the American mass media company said today (Mar 7).
In a statement announcing the merger, Discovery said that the combined company will officially be known as Discovery, Inc.
The name change reflects the company’s “renewed strategic focus on real-life storytelling across deeply loved genres”, the statement said.
Kenneth W. Lowe, former chairman, president & CEO of Scripps will now join Discovery’s board of directors.
“Today we become a stronger and more differentiated media company, with the most trusted portfolio of real life entertainment brands around the globe,” David Zaslav, president and CEO of Discovery said.
Discovery expects the acquisition to be accretive to adjusted earnings per share and to free cash flow in the first year after closing, including significant cost synergies estimated at USD$350 million.
Scripps shareholders will receive $90 per share under the terms of the agreement, consisting of $65.82 per share in cash and 1.0584 per share in Series C Common shares of Discovery stock.
This includes a cash payment of USD$2.82 per share to settle the collar pursuant to the merger agreement.
Note: An earlier version of this story incorrectly stated that the combined company will be named Discover, Inc. The correct name is Discovery, Inc.