Scripps Nears Deal to Buy Virgin's UKTV Stake
NEW YORK (
) --
Scripps Networks Interactive
(SNI)
is close to completing a deal to buy
Virgin Media's
(VMED)
50% stake in major British cable operator UKTV for about $500 million, the
Wall Street Journal
reported yesterday, citing sources familiar with the matter.
The U.S. media company, which owns and operates HGTV, Food Network and Travel Channel, is reportedly negotiating the final pricing for the agreement with Virgin Media; an official announcement could be coming within the next few weeks.
UKTV is a joint venture between Virgin Media and BBC Worldwide, the commercial segment of BBC. It currently operates 24 broadcast streams and 10 channels in the U.K. including Alibi, Eden, Blighty and Good Food.
Analyst David Bank of RBC Capital said that if the rumored $500 million deal were to be finalized, Scripps Interactive's annual earnings would gain 5 cents a share.
While Bank admits the news isn't verified, he says he "wouldn't be completely surprised if such a deal does occur, give
Scripps' low debt leverage and lack of international exposure."
Bank maintained his buy rating of the media company and a $57 price target for its shares. The stock closed at $51.96 on Tuesday and is up more than 25% over the past year.
--Written by Theresa McCabe in Boston.
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