Discovery Communications Inc. is in talks with CBS Corp. to sell half its
Discovery Times cable channel as part of a joint venture partnership,
according
to The Washington Post. The news comes on the heels of
last
week's announcement that privately held cable network Discovery would
close its retail operations. Both moves are part of Discovery's restructuring
under new CEO David Zaslav, who already streamlined the company's ownership by
jettisoning
Cox Communications.
While some reports indicate Zaslav is preparing an IPO for the the owner of
educational and infotainment channels, he could instead be preparing for a
sale. And CBS, which has only two cable networks — CSTV and Showtime —
could be an ideal acquirer.
After all, the logic behind a Discovery Times
joint venture could apply to the greater Discovery Communications. Clearly,
the news documentary channel would benefit from the vast archives of CBS News,
but Discovery's other networks would also benefit from CBS' other properties.
For example, CBS owns KingWorld, which manages the syndication of shows
involving such personalities as Dr. Phil, who could become a staple on
Discovery Health, and Rachael Ray, who could be coaxed away from rival Food
Network to anchor Discovery Home.
However, there is one potential catch for a deal: Liberty Media's 50% stake in
Discovery. While Liberty is attempting to unwind its stake in Discovery, tax
issues could make a sale to CBS unattractive to the famously tax-averse John
Malone. None of the companies commented to the Post, which characterized the
talks as early stages, meaning anything is still possible. —Matthew
Wurtzel
See
story from The Washington Post
See
related story about Cox from TheDeal.com
See
earlier post
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