Shares of Scripps Networks Interactive, Inc. SNI were quiet in Friday’s pre-market following a report from Business Insider that Yahoo! Inc YHOO may be interested in acquiring the company.
“Yahoo considered Scripps during a period in time when Mayer and other executives thought Yahoo would have billions of dollars to spend following the 2014 IPO of Alibaba, a company Yahoo invested in back in 2005. Scripps is the $10 billion parent company to seven cable channels including HGTV, the Food Network, and the Travel Channel,” according to the report.
A Yahoo source told Business Insider that "talks" had been initiated with Scripps to acquire the Food Network and the discussions later turned toward acquiring the entire company.
The report indicated, however, that any deal in the short-term is unlikely. “It would probably cost Yahoo at least $15 billion to buy Scripps today. Technically, Yahoo could afford that price tag if Scripps shareholders would accept Yahoo stock rather than cash.”
Yahoo’s current $47 billion market capitalization includes its stake in Alibaba Group Holding Ltd BABA
Scripps Networks Interactive, Inc. was unchanged in the pre-market and last traded at $75.27.
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