Discovery Communications Inc. completed its acquisition of Scripps Networks Interactive Inc. The combined company will officially be known as Discovery Inc.
The name change reflects the company's renewed focus on storytelling across deeply loved genres, the company said in a March 6 news release. Discovery expects the acquisition to be accretive to adjusted EPS and free cash flow in the first year after closing, including significant cost synergies.
The combination is expected to "create a strong economic model with capacity for rapid debt repayment and a clear runway for growth and value creation," the company said.
Scripps shareholders will get about $90 per share, consisting of $65.82 per share in cash and 1.0584 per share in series C common shares of Discovery stock valued based on a volume weighted average price, in each case in accordance with the terms of the merger agreement. This includes a cash payment of $2.82 per share in relation to Discovery's previously announced decision to exercise in full the cash top-up option under the merger agreement.
Kenneth Lowe, former chairman, president and chief executive of Scripps, was named to Discovery's board of directors, effective immediately.
