Discovery Communications Inc. (NYSE:DISCA) said Monday it has reached a deal to buy Scripps Networks Interactive Inc. (NYSE:SNI) in a cash-and-shares deal valued at US$14.6bn, including US$2.7bn of debt.
Discovery will pay US$90 a share, or 34% over Scripps' unaffected share price as of July 18.
The deal is expected to close by early 2018. The combined company will produce about 8,000 hours of original programming annually and be home to about 300,00 hours of library content.
It will have almost 20% share of ad-supported pay-TV audiences in the U.S. Discovery owns the Discovery Channel, TLC and Animal Planet, among others, while Scripps owns HGTV, Food Network, Travel Channel among others.
The deal is expected to result in about US$350mln in synergies.
Discovery Communications was up 0.41% at US$26.91 while Scripps shares were up 1.31% at U$88.05 in premarket trade.