Report: Discovery, Scripps In Merger Talks

Discovery Communications and Scripps Networks Interactive Inc are in merger talks, revisiting a deal that was scrapped three years ago, two people familiar with the matter told Reuters on Tuesday.

Scripps, whose channels include HGTV, Travel Channel and a majority stake in Food Network, is looking for a buyer at a time when it and other smaller media companies are under pressure to grow to give them negotiating power with cable and satellite companies.

Viacom Inc also has held talks to acquire Scripps, the sources said.

Scripps has long been considered a takeover target since the Scripps family trust that controlled the company ended five years ago.

This is at least the third time that Discovery, whose shareholders include cable magnate John Malone, has held talks to buy Scripps, according to the sources.