Newsline: Discovery to acquire Scripps for $14.6bn

Newsline: Discovery to acquire Scripps for $14.6bn

Newsline: Discovery to acquire Scripps for $14.6bn

The average numbers of shares are traded in a security per day, during the recent 3-month period.

It remains unclear whether the combination will help Discovery get more of its shows in programming packages being sold by YouTube, Hulu and other online distributors.

Discovery Communications, Inc. (NASDAQ:DISCK) shares were last seen up 1.43% at $25.50, which is 13.37% higher than the previous trading session. Finally, Weik Investment Services Inc. bought a new position in shares of Discovery Communications during the first quarter valued at about $209,000.

The acquisition could also lead to further consolidation among on other players in the market, including Viacom which had also been in talks to acquire Scripps. The deal values SNI stock at $90 per share.

The Standard & Poor's 500 index was little changed at 2,472.

Scripps Networks Interactive was spun out of the longtime Cincinnati-based newspaper chain and media service E.W. Scripps Co.in 2008.

Discovery Communications, Inc. has a 12-month low of $23.24 and a 12-month high of $29.18. Current price places the company's stock -1.87% away from its 200-day simple moving average, 2.59%, away from the 50-day average and also 2.12% away from 20-day average. Scripps Networks Interactive, Inc.

In Monday's second quarter earnings report, Discovery Communications says revenues increased 2 percent year over year to $1.75 billion. This estimate is provided by 24 analysts. During the same period a year ago, the firm posted $1.37 EPS. However operating income fell by 4% to US$236 million thanks to currency impacts. It is also expecting it to accretive to earnings per share and free cash flow in the first year after its completion.

COPYRIGHT VIOLATION NOTICE: This news story was originally reported by The Cerbat Gem and is the property of of The Cerbat Gem. If you are viewing this news story on another website, it was stolen and reposted in violation of United States & worldwide trademark & copyright law. Caterpillar Inc. Going from the most negative analyst price target to above consensus is one thing.

Discovery had tried unsuccessfully twice before to buy Scripps. TheStreet raised Discovery Communications from a "c+" rating to a "b-" rating in a research note on Thursday, April 20th. Finally, BidaskClub upgraded Discovery Communications from a "sell" rating to a "hold" rating in a report on Tuesday, June 27th. The stock presently has a consensus rating of "Hold" and an average price target of $76.60. The buyout, which still needs approval from the shareholders of both companies, is targeted to close by early next year. The total price of the deal is $14.6 billion including debt.

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