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Viacom drops Scripps bid

July 27, 2017

By Chris Forrester

Viacom is reported to have dropped out of talks to buy Scripps Networks Interactive.  Industry trade magazine Variety, for example, is reporting that the decision – although not confirmed by any of the parties – leaves the road clear for Discovery Communications to pursue a deal with Scripps.

The current picture is that Discovery and Scripps are in talks, but they may not result in an agreement.

Viacom’s all-cash bid could have resulted in a severe stress to its share price and could have ended up with Viacom being downgraded to ‘junk bond’ status.

Scripps Networks is very much a family-controlled business, and a report July 26 from analysts at Wells Fargo Bank suggested that the family trusts would be seeking at least $91 a share, and perhaps as much as $95 for a sale.

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