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Scripps Networks (SNI) Has Several Potential Suitors Besides Discovery (DISCA), Says Gabelli

December 12, 2013 9:49 AM EST Send to a Friend
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Price: $75.05 +0.62%

Rating Summary:
    3 Buy, 17 Hold, 1 Sell

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    Up: 21 | Down: 10 | New: 7
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Scripps Networks Interactive (NYSE: SNI) stock was downgraded by Macquarie and RBC on Thursday, a day after Citi downgraded the stock to Sell. The issue involves rumors Discovery (Nasdaq: DISCA) is interested in Scripps. While some view the deal as unlikely, Gabelli analyst Barry L. Lucas took the other side. He sees synergies, and he believes other companies like Disney (NYSE: DIS), Time Warner (NYSE: TWX), and Comcast (Nasdaq: CMCSA) could also be interested.

"Arguably, Discovery’s ability to further drive international penetration of the Scripps networks and content, which heretofore has been relatively modest, could provide significant benefits to DISCA," said Lucus. "At the same time, we think that the marriage of Discovery Channel, TLC, Animal Planet, etc. with HGTV, TVFN, Travel and Cooking in the U.S. presents opportunities as well, particularly as carriage agreements come up for renewal in the face of a consolidating multi-channel video provider universe."

"While Discovery may be the lead horse, we think that other cable network owners such as Disney and Time Warner could be interested. Additionally, Comcast's expanding content universe may put it in any hunt for SNI as well," he added.

Gabelli has a Buy rating on Scripps Networks Interactive.

For an analyst ratings summary and ratings history on Scripps Networks Interactive click here. For more ratings news on Scripps Networks Interactive click here.

Shares of Scripps Networks Interactive closed at $81.00 yesterday.

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