Discovery buying Scripps for US$14.6bn

Chelsea West
August 1, 2017

The stock was sold at an average price of $25.98, for a total transaction of $229,455.36.

A number of research firms have recently issued reports on DISCK. Zacks Investment Research upgraded Discovery Communications from a "hold" rating to a "buy" rating and set a $29.00 price target on the stock in a research note on Thursday, July 20th. Discovery Communications, Inc. has a 12-month low of $23.96 and a 12-month high of $30.25.

Discovery Communications (NASDAQ:DISCK) last posted its quarterly earnings data on Tuesday, May 9th. The company beat the analyst EPS Estimate with the difference of $0.12. Each produces net profit margins in the high teens, with Discovery earning a net profit of $1.2 billion previous year.

Discovery Communications Inc. will be using a mixture of cash and stock to fund its purchase of Scripps Networks Interactive, Inc.

Dynavax Technologies Corporation (NASDAQ:DVAX)'s stock on Friday traded at beginning with a price of $10.10 and when day-trade ended the stock finally remains unchanged to reach at $9.25.

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David Zaslav, President and CEO, Discovery Communications said: "This is an exciting new chapter for Discovery".

The Scripps family owns more than 95% the company voting stock, and has entered into a pact with key Discovery figures John Malone and Advance/Newhouse Programming Partnership to vote in favour of the deal.

Discovery shares lost 4.2 percent. Current price places the company's stock -77.05% away from its 200-day simple moving average, -2.99%, away from the 50-day average and also 2.12% away from 20-day average. Finally, Kentucky Retirement Systems acquired a new position in shares of Discovery Communications during the fourth quarter valued at approximately $429,000. If you are reading this news story on another website, it was illegally stolen and republished in violation of USA and global copyright and trademark legislation. If you are viewing this report on another website, it was copied illegally and reposted in violation of USA and worldwide copyright and trademark law.

"We view the deal as among the most logical in media", RBC Capital Markets analyst Steven Cahall said in a recent report. The Firm provides content across multiple distribution platforms, including pay-television (pay-TV), free-to-air (FTA) and broadcast television, Websites, digital distribution arrangements and content licensing agreements.

Neither company has links to a US broadcaster or major domestic sports rights, so it will remain to be seen how much leverage the combined company will have with distributors.

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