US media company Discovery Communications has reported a six per cent increase in its full year revenues as its proposed takeover of cable television network owner Scripps Networks Interactive was given the green light by the Department of Justice.
Discovery yesterday (Tuesday) reported its full year financial results for 2017. Full year revenues of $6.873bn (€5.54bn) increased six per cent compared to the prior year primarily due to eight per cent growth at Discovery’s international networks and five per cent growth at US networks.
Adjusted Operating Income Before Depreciation and Amortisation increased five per cent to $2.531bn primarily due to five per cent growth at US networks and three per cent growth at international networks.
Meanwhile, the DOJ has closed its investigation into Discovery’s proposed acquisition of Scripps. In November, shareholders moved to give overwhelming backing to the deal, as officials awaited news of potential regulatory challenges to the takeover.
In July, Discovery sealed a deal to acquire Scripps, with the agreement valued at $14.6bn.
The purchase price implies a total cash and stock transaction value of $14.6bn, including the assumption of Scripps’ net debt of approximately $2.7bn.
Following closure of the deal, Scripps’ shareholders will own approximately 20 per cent of Discovery’s fully diluted common shares and Discovery’s shareholders will own approximately 80 per cent.
Discovery operates international sports broadcaster Eurosport, while Scripps, which owns various entertainment channels, in June participated in a funding round for US OTT service fuboTV. Scripps also operates Polish media company TVN, a major sports broadcaster in the country.
David Zaslav, president and chief executive of Discovery Communications, said: “2017 was an historic year for Discovery. We took significant steps to position ourselves for success in a changing industry, while driving growth from our traditional linear business and accelerating our investments in new growth areas like digital and mobile in an effort to reach superfans on every screen.
“Solid global advertising and distribution revenue growth helped us achieve our 2017 strategic and financial objectives. Additionally, we remain excited by the prospects for a combined Discovery and Scripps Networks.”
The closing of the proposed transaction remains subject to completion of review in Ireland and other customary closing conditions. The transaction is expected to close by the end of the first quarter of 2018.
Discovery on Monday hailed the performance of its first Olympics as a major rights-holder, stating the Pyeongchang 2018 winter Games delivered on its commitment to engage more people, on more screens than ever before across Europe, leaving it in a strong position for the 2020 summer Olympics in Tokyo.