Home » Money

First National Bank of Omaha Maintains Stake in Discovery Communications, Inc. (DISCK)

01 August, 2017, 22:57 | Author: Samuel Sharp
  • The Food Network will get some new friends

Discovery Communications Inc. says that it is expecting the deal to acquire Scripps Networks Interactive, Inc. will result in $350 million in synergies.

Insider Trades for Discovery Communications, Inc. show that the latest trade was made on 14 Jun 2017 where Campbell (Bruce L), the Officer completed a transaction type "Sell" in which 9283 shares were traded at a price of $26.43.

But what it won't do is solve the main issue confronting TV companies: The internet.

As a result of "the ratings and impression softness in the US market", Scripps cut its full-year 2017 guidance for revenue growth to 4 percent from 6 percent and for segment profit to no change from 3 percent growth. Company fiscal year is ending in December and analysts' consensus recommendation is Outperform for DVAX and estimated EPS for next quarter is $ -0.41.

U.S. television networks and cable providers are under pressure as more viewers watch their favourite shows and movies on phones and tablets.

Firms such as Amazon and Netflix are increasing competition in the sector. Online ads are still worth a fraction of TV ads but the audiences for the networks shows - and the ways in which they can package their content - has also grown enormously.

The combined entity will control nearly 20 percent of the ad-supported pay-TV viewership in the United States.


"The transaction supports and accelerates Discovery's pivot from a linear TV-only company to a leading content provider across all screens and services around the world", David Zaslav, Discovery's chief executive, told investors.

The pair highlighted their strength among female viewers in the United States market, claiming a more than 20pc share of women watching prime-time pay-TV. The total price of the deal, including debt, is $14.6 billion.

Discovery and Scripps will have almost a 20% share of ad-supported pay-TV audiences in the USA, the companies said.

Scripps has been considered a takeover target since the Scripps family trust, which controlled the company, was dissolved five years ago. At that time, Lowe will join Discovery's board of directors.

The deal requires regulatory and shareholder approvals.

The transaction, expected to close in early 2018, will see Discovery pay Scripps shareholders approximately $90 a share, representing a 34% premium to the company's most recent closing price. Gabelli reaffirmed a "buy" rating on shares of Scripps Networks Interactive in a research note on Thursday, July 27th. Discovery outbid Viacom Inc for Scripps, Reuters reported first last week. Guggenheim Securities and Goldman Sachs served as financial advisers to Discovery. Allen & Co and JPMorgan served as financial advisers to Scripps.

Recommended:

  • Ballistic Missile Defense System Test Successful

    Ballistic Missile Defense System Test Successful

    US officials say they've successfully conducted a missile defense test using a medium-range ballistic missile. South Korea had earlier deployed two such units but the rest were delayed due to environmental concerns.
    Donald Trump has a new chief of staff: Who is John Kelly?

    Donald Trump has a new chief of staff: Who is John Kelly?

    Several administration positions that were usually managed by the chief of staff now reported directly to Mr Trump. Elaine Duke, deputy secretary of Homeland Security, will be acting chief of the department.
    Donald Trump replaces Reince Priebus as White House Chief of Staff

    Donald Trump replaces Reince Priebus as White House Chief of Staff

    On Friday, as Trump traveled to NY , he took both Scaramucci and Priebus on Air Force One with him. Trump structured the White House in a way that undermined Priebus' authority from Day One.
  • Vettel delights in proving Ferrari critics wrong

    Vettel delights in proving Ferrari critics wrong

    Spaniard Carlos Sainz was seventh for Toro Rosso with Mexican Sergio Perez eighth and Force India team mate Esteban Ocon ninth. Raikkonen, who led Ferrari's last qualifying one-two at May's Monaco Grand Prix, was 0.168 seconds slower.
    Vaghela's effect: 5 Congress lawmakers quits from party in Gujarat

    Vaghela's effect: 5 Congress lawmakers quits from party in Gujarat

    Parmar told reporters he was "fed up with factionalism" in the Congress which had prevented the growth of the party in Gujarat . A section of the Congress' legislators claimed that seven MLAs decided against going with them to Bengaluru.
    Trump on Long Island Today at Suffolk College

    Trump on Long Island Today at Suffolk College

    The venue is close to where MS-13 has committed a string of gruesome murders, including April's massacre of four young men. President Donald Trump will address gang violence in a speech on Friday afternoon, the White House announced.
  • Sad! Jeanne Moreau dies at 89

    Sad! Jeanne Moreau dies at 89

    Of all the stories she told me, the one I remember most was a particularly pointed one from her childhood. In her early career, the aging worldwide lions of directing lined up at her door and Moreau answered.

    Cong parades MLAs, alleges BJP bid to poach them

    Gohil further said that they have also managed to establish contact with seven Congress MLAs, who were reportedly inaccessible. Shivakumar on Saturday said the BJP "government in Gujarat is harassing them and forcing them to cross over".
    Pace Of US Oil Rig Count Growth Slows As Prices Climb

    Pace Of US Oil Rig Count Growth Slows As Prices Climb

    The gains in Brent pushed the difference between the two benchmarks to the widest in two months. In the prior week, the North American Rig Count was 1156 and USA rig count was 950.
  • Apple has removed VPN apps from its China store

    Apple has removed VPN apps from its China store

    The good news is users with billing addresses in other countries will be able to continue to access VPN software from App Store . Apple's push for compliance come as it faces headwinds in the Chinese smartphone market.

    Teavana to close stores in Baton Rouge, Metairie in worldwide shutdown

    Starbucks acquired the US mall-based chain in 2012, with then-CEO Howard Schultz citing the huge potential for the tea market. While DavidsTea does have mall-based locations, the company doesn't restrict itself like Teavana does.
    USA  economy grows 2.6% in second quarter

    USA economy grows 2.6% in second quarter

    Some critics argued that this wasn't the correct time to do so and that the economy couldn't support such monetary policy. While businesses probably continued to carefully manage their inventories, they appeared to spend more in some places.


Popular

Nitish's stand to defy people's mandate 'unfortunate': Yadav
Referring to his future role in national politics, he said: "Serving Bihar is also national service". Yadav opposed the decision and called the entire episode "unfortunate".

The Cavaliers Would Reportedly Trade Kyrie Irving To Phoenix For This Package
Last season, he averaged a career-high 25.2 points and 5.8 assists per game while shooting 40.1 percent on 3-pointers. James has been too good and there is too much talent on the Cavaliers to assume their immediate downfall.

Trump names John Kelly as new chief of staff, replacing Reince Priebus
John has also done a spectacular job at Homeland Security. "He has been a true star of my Administration", Trump tweeted. I'm going to honor the president everyday, I'm going to honor his agenda, and I'm going to honor the country.

Need Pakistan's positive contribution to open roads in Kashmir: CM Mehbooba
She then drew attention to the 2005 working groups constituted to address the internal dimensions of the Kashmir issue . CM of Kashmir, Mehbooba Mufti is saddened to the see the way India is being projected on television prime times.

October trial date for women accused of murdering Kim Jong Nam
Aisyah and Huong said that they believed they were carrying out a prank for a reality television show, and not a murder. Shah Alam High Court judge Justice Azmi Ariffin set the date for the trial, reports The Malaysian Star daily.

Homeland Security Chief Kelly Replacing Priebus as WH Chief of Staff
Priebus said that he tendered his resignation privately to President Trump on Thursday and that he accepted it. Scaramucci compared himself and Priebus to the Biblical brothers Cain and Abel.

Larry Kudlow: Getting Rid of Border Adjustment Tax Will Move Reforms Forward
House Speaker Paul Ryan is throwing in the towel on his controversial border adjustment tax proposal. The Trump administration has set a goal of economic growth of 3 percent.

LaVar Ball Says He & LaMelo Could Beat LeBron & Jordan
Ball was given the technical foul in the first half of his team's game against Team BBC. "She's got a vendetta", Ball told ESPN . If you're gonna be qualified you better be in shape and you better know the game.

Knife-wielding man goes on deadly rampage in Germany
The incident occurred in a supermarket in the German city, according to reports . "It was definitely a lone attacker". Writing on Twitter , Hamburg police said: 'We have no clear information as to the motive or the number of wounded'.

US Hits Iran With Sanctions After 'Provocative' Space Launch
Iran state TV reported Thursday that the country had successfully tested a rocket that could send satellites into orbit. The International Atomic Energy Agency has repeatedly verified Iran is in compliance with the agreement.