Discovery On Verge Of Scripps Takeover

(RTTNews) - Discovery Communications reportedly has the upper hand in talks to buy Scripps Networks Interactive, owner of HGTV and the Food Network, a deal that could be worth about $11 billion.

According to CNBC, Scripps has entered into exclusive negotiations with Discovery to finalize a deal in the next few days after Viacom was out of the competitions.

Discovery, part of cable TV billionaire John Malone's media empire, is looking to close the offer at about $90 per share, which represents a premium of 34 percent compared to Scripps stock before reports about an acquisition emerged.

Discovery plans to pay about 70 percent in cash and 30 percent stock. However, sources told CNBC that the family behind Scripps was looking for at least 50 percent cash in the deal.

Negotiations between Discovery and Scripps could take few more days and there is no guarantee they will reach a deal.

Viacom, parent of MTV and Nickelodeon, dropped out of the bidding for Scripps after failing to keep up with the offer price.