How Will Discovery Communications (DISCA) Stock React To Reports That It's Purchasing The Hub?

NEW YORK (TheStreet) -- Discovery Communications (DISCA)  reportedly wants to purchase a controlling interest in children's entertainment network The Hub from Hasbro (HAS) , according to Bloomberg.

The Hub had 72 million subscribers as of the end of 2013, placing it behind rival Nickelodeon's (VIAB) 99 million subscribers, while competition for family friendly programming from services like Netflix (NFLX) and Amazon Prime (AMZN) has also increased in recent years.

Hasbro will maintain a small stake in the renamed network that will show programming aimed at families and children.

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Discovery Communications broadcasting arm Discovery Channel sold a 50% stake of its Discover Kids network to Hasbro, later becoming The Hub, in 2009 for $300 million.

Discovery Communications shares are down 0.15% to $39.89 in early market trading today.

TheStreet Ratings team rates DISCOVERY COMMUNICATIONS INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate DISCOVERY COMMUNICATIONS INC (DISCA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

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