Scripps Networks Interactive Shares Jump on Speculation Discovery Could Make Bid
Shares of Scripps Networks Interactive, the parent company of HGTV, the Food Network, the Travel Channel and more, jumped 14 percent in after-hours trading on Tuesday after reports surfaced that Discovery Communications might be interested in acquiring the company.
Shares of Scripps Networks Interactive closed fractionally higher on Tuesday at $75.25, but surged another $10.90 after the closing bell.
At the stock's closing price on Tuesday, Scripps Networks Interactive was valued at $11 billion, while Discovery had a market capitalization of $30 billion.
Scripps Networks Interactive did not respond to a request for comment on Tuesday. A spokeswoman for Discovery said the company does not respond to speculation.
E.W. Scripps, an owner of newspapers and TV stations, launched HGTV in 1993, and then followed up with several more channels until spinning them off under the umbrella of Scripps Networks Interactive in 2008. Its stock has underperformed relative to most media companies, rising about 90 percent in a little more than five years.