Cramer's 'Mad Money' Recap: Primed for Private Equity

Discovery is in the "sweet spot," which is cable. "It could be bought or sold or cut up into little pieces," he said. Plus, "people want cable properties."

It has two things that Cramer said he loves. First, the company has David Zaslav, "a man who knows how to consolidate."

Second, Cramer said, he likes Discovery's actual properties. "They can be amortized over and over," which means they can show the same show "endlessly," Cramer said.

Zaslav came in and started throwing away all of Discovery's money-losing programs, he continued. And now the company is selling its retail stores so that it can focus on its strength, which is creative and unique programming.

Discovery is a play on digital cable and high-growth TV, Cramer said. In addition, he believes that the stock has a big catalyst. Discovery owns two-thirds of Discovery Communications, and if it can get its hands on the other third, Cramer said he could see the stock going up to $25 on that alone. Discovery closed at $20.93 Friday.

People should buy this one because of its "cut-throat elimination" of its unprofitable ventures, the growth of digital and high-def cable, and the fact that it's a possible takeover target for other cable companies, which are always looking for more cable properties, Cramer said.

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