Travel Channel,Ghost Adventures Live
October 31, 2009
Travel Channel,Ghost Adventures Live:News Corp and Scripps Networks Interactive are lead bidders for Cox Enterprise’s Travel Channel, and talks are now focused on the winner forming a joint venture with Cox, sources familiar with the matter told Reuters.
The winning party would contribute cable networks and cash, and own roughly 65 percent of the new company, while Cox would contribute Travel Channel and hold a minority stake, the sources said. The majority stake has not been finalized and is still being discussed, one of the sources said.
The joint venture is currently being valued at above $900 million, but that valuation is “a bit complex and is still being worked out,” one of the sources said. The new company would take on debt to pay Cox a cash dividend, the sources said.
All sources spoke on condition of anonymity because the details are not public.
Travel Channel is known for programs such as “Anthony Bourdain: No Reservations,” in which author and chef Bourdain travels the world to showcase local cuisines; and “Bizarre Foods with Andrew Zimmern,” in which the food columnist tries unusual delicacies such as lamb eyeballs and squirrel brains.
If News Corp wins, it will likely contribute the National Geographic Channel, that person said. It was unclear which cable assets Scripps Networks would contribute if it won the auction, but it owns a variety of “fine-living” genre channels such as the HGTV, Do It Yourself and Food Network.
News Corp declined comment while Cox and Scripps Networks were not immediately available.
A joint venture would help Cox avoid the big tax bill it inherited as part of a 2007 deal to swap its 25 percent stake in Discovery Communications Inc, the sources said. It received the Travel Channel and $1.275 billion of cash for that stake.
PRIVATE EQUITY UNLIKELY
Private equity firms Kohlberg Kravis Roberts & Co, Thomas H. Lee Partners and Providence Equity had also submitted bids for Travel Channel, which sources said ranged between $700 million and $800 million.
Initial expectations for the Travel Channel ranged from $600 million to $700 million. With current discussions including other cable assets in a joint venture, the valuation of an independent Travel Channel was unclear.Reuters
