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Discovery To Buy Out Cox Communications Stake

Reuters
Thursday, 29 Mar 2007 | 1:15 PM ET

Discovery Communications, the cable television programmer, said on Thursday it plans to buy back a 25% stake held by shareholder Cox Communications Holdings.

Discovery, striking a deal which makes its ownership structure slightly less complicated, will pay Cox $1.275 billion in cash and give it the Travel Channel and Antenna Audio.

The deal is expected to close in May, Discovery said, adding that the cash amount is expected to be raised through an additional bank or other financing facility.

"This proposed transaction will simplify Discovery's ownership structure, further streamline our operations and give the company more strategic flexibility," Discovery Chief Executive David Zaslav said in a statement.

Once the deal is completed, Discovery Holding will own two-thirds of Discovery Communications and the remaining one-third will be held by Advance/Newhouse Communications.

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