Food Network, HGTV owner picks up Travel

Published 4:00 am Sunday, November 8, 2009

Scripps Networks, the owner of the Food Network and HGTV, snapped up a majority stake in the Travel Channel in a nearly billion-dollar deal. The agreement Thursday by Scripps and Cox Communications, which will maintain a 35 percent stake in the channel, underscored the value of the cable channel business. The deal concluded a months-long series of bids by Scripps, News Corp., and a number of private equity groups.

Combining the Travel Channel with Food Network and HGTV will make our fast-growing, young company the undisputed global leader in lifestyle programming, Kenneth Lowe, the chairman of Scripps Networks, said.

The joint venture values the relatively low-rated Travel Channel at $975 million a price many investment bankers and analysts say they believe is rich for the current market.