Discovery set to buy Scripps for nearly $12 billion

Discovery set to buy Scripps for nearly $12 billion

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In the fight against traditional television channels against growing internet competition, we are witnessing a new billions of dollars in the US television market. Media company Discovery Communications acquired Scripps Networks Interactive for $11.9 billion, the two companies said.

Discovery includes, among other things, Discovery Channel, DMAX, and Eurosport channels. With the Scripps deal, Discovery now also provides Travel Channel, Food Networks and HGTV channels, some of which are also available from Bulgarian cable operators. Together, the two companies control almost 20 per cent of the US paid pay television market.

In the battle for the acquisition of Scripps Discovery, it has imposed itself on Viacom, which has also been bidding. With the purchase, Discovery intends to increase its international presence, lower its costs, and build on its position in program packages with pay-TV operators.

Scripps has long been seen as an acquisition target, as the Scripps family fund, which controlled the company, ended operations five years ago. This is at least the third time that Discovery, whose shareholders include cable mogul John Malone, is negotiating to buy Scripps, sources from Reuters said.

A deal between Discovery and Scripps will create a 19 billion-dollar cable network specializing in programs without a preliminary scenario.

Channels and operators are under increasing pressure from online providers, such as Netflix and Amazon, as more viewers use streaming services to watch movies, with many watching the smartphone and tablet screens.

With the emergence of streaming services such as Netflix, Hulu and Amazon Prime Video, traditional television is under increasing pressure to keep its place as a means of entertainment, distraction and information. Although people still spend more time watching TV than using other media, there are already many signs that show that the future of television may not look so bright.

According to Nielsen, young Americans are watching less television. From the first quarter of 2011, the time Americans aged between 18 and 24 spend in front of their TVs has fallen by more than 40 percent. In the first quarter of 2017, young Americans spent an average of 14 hours and 31 minutes a week watching traditional television, compared to 26 hours and a half in 2011.

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