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Viacom willing to make all-cash deal to buy Scripps

Making an all-cash bid would mark an aggressive move for Viacom Chief Executive Bob Bakish

Reuters 

Viacom names Bob Bakish as acting CEO

has informed it is willing to pay all cash to acquire the US TV network operator, sources familiar with the matter said. The move by Viacom, which had $12.17 billion in debt as of March 31, could potentially mean that the $14.3-billion media company would lose its investment-grade status to buy the $10.6-billion Scripps. Last year Moody’s downgraded to the lowest level of investment grade — a status they would likely lose as a result of the deal.

Viacom is bidding for Scripps, which owns channels such as HGTV, Food Network and Travel Channel, against Discovery Communications, which is not expected to make an all-cash bid, according to the sources, all of whom wished to remain anonymous because they are not permitted to speak to the media. A Viacom spokeswoman declined to comment, as did a Discovery spokesman. It is not clear what the bids were valued at or whether Viacom or Discovery has won the bidding for Scripps, but a decision was expected within the next few days, according to the sources. It is also possible that a deal may not happen.

Making an all-cash bid would mark an aggressive move for Viacom Chief Executive Bob Bakish, who has pledged to turn around the struggling media company, which owns MTV, Nickelodeon and Paramount Pictures.

A deal with Scripps would create a $24.9 billion cable network that brings together non-scripted programming and scripted programming, including children’s shows and a movie studio.

Bakish was named to his role late last year after discussions between CBS Corp and Viacom about a possible recombination ended. Viacom has spent the past months focusing resources on six of its brands, including the soon-to-be-launched Paramount Network. 

First Published: Thu, July 27 2017. 00:56 IST
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