Discovery and Scripps Is a Force to Be Reckoned With

Discovery and Scripps Is a Force to Be Reckoned With

It's no secret the television industry is facing extreme pressure from cord cutting. Nearly every major television network has lost subscribers over the last five years, and they're bound to lose more in the next five years. That's why Discovery Communications (NASDAQ: DISCA) and Scripps Networks (NASDAQ: SNI) are teaming up after the latter agreed to Discovery's $11.9 billion acquisition offer.

The combined company will own a massive portfolio of networks that capture nearly 20% of ad-supported pay-TV viewership in the U.S. That's extremely valuable for the media company as it goes to bat against mega-distributors like Comcast, Charter Communications, and AT&T, which combine to control well over 60 million television households.

Image source: Discovery

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Source: Fool.com