Report claims Yahoo considered acquisition of Scripps Network
Yahoo Inc. may have engaged in talks to acquire Scripps Networks Interactive Inc. last year, according to an unconfirmed report today.
Business Insider claims that Yahoo considered an acquisition of Scripps during a period of time they believed they would have cash to spend due to the IPO of Alibaba Group Holding Ltd.
Further the site claims that Yahoo may have actually begun M&A discussions with Scripps with two different deals; a full acquisition of Scripps, or a separate deal to acquire the Food Network only.
Business Insider also quotes a source who claims Yahoo may have also approached Time Warner Inc. about acquiring CNN, but suggests that the talks for either a Scripps or CNN buy are no longer active.
Scripps brands include Food Network, DIY Network, Cooking Channel, Travel Channel, Great American Country and ulive.
The synergies for a possible acquisition of Scripps is described as being ideal as Yahoo’s most in-demand demographic: women who are 25 or 35 and older, similar demographic to Scripps viewers, and both companies produce content with cross-over potential between cable and the Internet.
Other benefits would have included web/ TV ad bundling that would increase revenue, and a platform for Yahoo’s long form content outside of its own Internet only platforms.
While the unconfirmed reports should perhaps be taken with a pinch of salt, it is a fact that Yahoo has been aggressive in acquisitions since CEO Marissa Meyer took the helm. That said we only need to look back as far as the AOL Time Warner merger to know what happens when internet companies merge with cable television interests.
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