Scripps To Get Majority Stake In Travel Channel

BARBARA ORTUTAY

NEW YORK (AP) — Scripps Networks Interactive Inc. is betting that food and travel are an ideal combination. The company behind the Food Network is snapping up a controlling stake in the Travel Channel, giving the cable network a value of nearly $1 billion.

Scripps said Thursday it will take a 65 percent stake in Cox Communications Inc.'s Travel Channel, which reaches about 95 million U.S. households.

Under the joint venture agreement, Scripps Networks will contribute $181 million in cash. Cox, in turn, will contribute the Travel Channel, valued at $975 million.

The partnership will then take on $878 million of debt that will be guaranteed by Scripps and further guaranteed by Cox, with the proceeds to be distributed to Cox. In the end, the partnership will have about $696 million of net debt, Scripps said.

The Travel Channel is home to popular shows such as Anthony Bourdain's "No Reservations," where the sharp-witted author and chef trots the globe in search of tasty local cuisine and color. Many of its other popular shows, like "Bizarre Foods" and "Man v. Food," also revolve around eating. Scripps also owns HGTV, with home improvement, decorating and do-it-yourself shows like "Real Estate Intervention" and "Renovation Realities."