Discovery Buying Sni for $14.6 Billion

Spots N Dots The Daily News Of TV Sales August 1, 2017 DISCOVERY BUYING SNI FOR $14.6 BILLION SCRIPPS FAMILY CONTROL ENDS After several days of rumors—and a surprising competing bid from Viacom—the Scripps Family has agreed to sell Scripps Networks Interactive (SNI) to Discovery Communications for $14.6 billion in cash, stock and debt assumption. The sale comes about nine years after the cable networks were spun off from The E.W. Scripps Company, which is also controlled by the family and primarily owns TV and radio stations, having spun off its newspapers in 2015. Discovery will be adding the lifestyle networks of SNI: HGTV, Food Network, Travel Channel, DIY Network, Cooking Channel and Great American Country. The announcement from Discovery says it sees strong opportunities to strengthen its existing global female networks with content from the Scripps brands. It says Scripps also has a strong position in k the U.K. (UKTV, an independent commercial joint venture with BBC Worldwide) and Poland (TVN). Those assets will combine with Discovery’s existing portfolio: Discovery Channel, TLC, Investigation Discovery, Animal Planet, Science and Turbo/Velocity, as well as OWN in the U.S., Discovery Kids in Latin America, and Eurosport across Europe. “This is an exciting new chapter for Discovery. Scripps is one of the best run media companies in the world with terrific assets, strong brands and popular talent and formats,” said Discovery CEO David Zaslav. SNI CEO Ken Lowe added that the deal with Discovery “presents an unmatched opportunity for Scripps to grow its leading lifestyle brands across the world and on new and emerging channels including short-form, direct-to-consumer and streaming platforms.” The combined company will produce approx. 8,000 hours of original programming annually, be home to approximately 300,000 hours of library content, and will generate a combined seven billion short-form video streams monthly. Combined, Discovery and Scripps will have nearly 20% share of ad-supported pay-TV audiences in the U.S. Additionally, they will account for over 20% share of women watching primetime pay-TV in the U.S. “ Well, good thing they’re combining because Q2 results were underwhelming,” was the sarcastic headline on a Wall Street note issued by Wells Fargo Securities analyst Marci Ryvicker. SNI’s ad revenues were up only 2.2% (against a projected 5%) and Discovery also missed the mark for revenues, with international much softer than the U.S. The analyst said the results showed “how tough the cable net business has become.” The transaction is expected to close by early 2018. SNI shareholders will receive $63 per share in cash and Discovery Class C stock valued at $27, for a total of $90. They’ll also have the option to take more cash or more stock, subject to pro rata cutbacks if either option is oversubscribed.

ADVERTISER NEWS Fiat Chrysler has won approval from federal and California regulators to sell 2017 diesel vehicles that have been in limbo since questions arose about emissions software in over 100,000 2014-2016 vehicles……There might yet be a combination of Staples and Office Depot (rejected by the government in 1997 and 2015), but in a different structure than originally envisioned. The New York Post reports Sycamore Partners, which is taking Staples private in a $6.9 billion deal, has signaled a willingness to sell off just Staples’ retail stores (keeping the profitable operation that sells direct to large corporate clients). Staples revealed in a filing last week that “Party A” (presumed to be Office Depot) is bidding to buy the retail stores only……Camping World, which recently purchased Gander Mountain out of bankruptcy and will operate 50-60 locations as Gander Outdoors, is also buying TheHouse.com, an online retailer handling items like bikes, skateboards, snowboards and outdoor gear. “This vertical strategy (by adding TheHouse. com)…enhances the renewed strategy behind the new Gander Outdoors model,” Camping World Chairman (and CNBC personality) Marcus Lemonis said……Del Taco says promotions helped produce a 7.1% same-store sales increase in Q2, far ahead of most of the restaurant business. It’s also reporting double-digit gains for the first five weeks of the current quarter from its more than 550 locations in 15 states…..Dunkin’ Donuts plans to simplify menus at another 700 units by October, discontinuing afternoon sandwiches and some bagels and muffins. The moves will cut down on employee turnover and transform the chain into “a beverage-led, on-the-go brand.” Same-store sales were up 0.8% in the quarter than ended on 7/1……Bojangles’ same-store sales were down 1.4%, hurt mostly by company-owned stores that fell by 3.3%. The chain plans to expand into adjacent markets with franchises leading the effort as plans to open more company-owned locations are being pared back. Still it will open 25 or 26 company-owned stores this fiscal year and 28-30 franchises……With the housing market hot, Lending Tree had a record second quarter and is increasing its full-year guidance. The TV advertiser saw revenue from mortgage products up 28% over last year’s Q2 and revenue from non-mortgage products (home equity loans, reverse mortgages, personal loans, credit cards, student loans and others) was up 112%...... Charter Communications has spurned an offer from Sprint for a merger, and it plans to stick with an existing wireless reseller agreement with Verizon. “We understand why a deal is attractive for SoftBank (Sprint’s owner), but Charter has no interest in acquiring Sprint,” a spokesman said. “We…intend to launch wireless services (via Verizon) to cable customers next year.”

NETWORK NEWS The city of Los Angeles has reached an agreement with the International Olympic Committee to host the 2028 Summer Games after competing with Paris for the 2024 Summer Games. This will be the third time Los Angeles has hosted the Summer Games, putting L.A. in a tie with London and Paris. It will also mark the first Olympics held in the United States since Salt Lake City was the location for the 2002 Winter Games and the first Summer Olympics in the U.S. since Atlanta in 1996. NBC agreed to pay $7.75 billion for a contract extension that allows the network to air the Olympics through the 2032 games……The CBS veteran crime drama series NCIS: Los Angeles has added Nia Long (Boyz N the Hood, Empire) as a series regular. Long will play Shay Mosely, the team’s new assistant director. Her character will fill the void left by the death of NCIS Assistant Director Owen Granger, played on the show for five seasons by the late Miguel Ferrer, who died in January. Long’s character is a former secret service agent with Washington insider experience who brings an East Coast style and demeanor to the West Coast team. The new character will be introduced when NCIS: Los Angeles premieres its ninth season on Sunday, October 1st……. CBS Corporation has entered into a four-year first-look and co-financing strategic partnership with Brian Grazer and Ron Howard’s Imagine Television Studios. Under the agreement, Imagine Television Studios will develop scripted, unscripted and long-form digital content for CBS platforms as well as non-CBS affiliated platforms. The partners will co-produce and co-own programming for CBS TV, CBS All Access and Showtime. Grazer and Howard recently received 16 Emmy nominations for its television programming, including Genius, which took 10 nominations, and for The Beatles: Eight Days a Week – The Touring Years. The production company also runs National Geographic Channel’s acclaimed scripted-unscripted hybrid series Mars and the science anthology series Breakthrough…….The creator and executive producer of the new Fox series The Gifted signed a new two-year overall deal with the network to develop new projects down the road. Matt Nix’s deal with the studio behind the Marvel drama, 20th Century Fox Television, allows Nix to continue as executive producer/showrunner for The Gifted. The series is set in the world of the X-Men and follows a suburban couple whose ordinary lives are rocked by the sudden discovery that their children possess mutant powers. The Gifted cast includes Stephen Moyer, Amy Acker, Sean Teale, Jamie Chung, Emmy Dumont and Blair Redford... NBC says The Good Place, Starring Kristin Bell and Ted Danson, will launch its second season with a special one-hour episode on September 20th at 10 p.m. (ET), immediately following the two-hour season finale of America’s Got Talent. And The Blacklist, starring James Spader as a former U.S. Navy officer turned high-profile criminal begins its 5th season Wednesday, September 27th at 8 p.m. (ET).

25% OF RETAILERS INCREASES AD BUDGETS A study by the digital firms Aptaris and dunhumby found that one-quarter of retailers spent more money on advertising last year, compared to 2015. 66.7% of retailers surveyed are expecting to reduce their spending on circulars over the next two years, while 85.5% expect less spending during the next five years. Meanwhile, in the grocery category, ad budgets increased in a range of 0.2% to 4% for an average increase of 1.25%. Grocers spend an average of 57.6% of their ad dollars on print circulars, but many expect that to decrease over the coming years. Manufacturers have offered trade funds to help grocery and other retailers offset the spending for circulars and other advertising. However, the study found that these funds often go unclaimed due to what the grocers say is a laborious negotiating and sales tracking process. Trade funds from CPG companies like Proctor and Gamble, Johnson & Johnson, General Mills and Clorox just don’t give the money over to the retailers. Understandably, they want to track the return they get on their investment. Many retailers find it takes too much time and requires advanced tracking systems. So, many just leave the money on the table. The study found that improved tracking systems are becoming available for retailers and CPG companies that are making it easier to follow sales at a very granular level, while suppliers and retailers are increasingly collaborating on marketing and advertising platforms, including online vendor portals.

THIS AND THAT Leading Hollywood producer Will Packer has partnered with Discovery Communications and Universal Pictures to form Will Packer Media. The venture will focus on the New American Mainstream audience, with an urban millennial core that is defining and driving pop culture at large. The announcement says Will Packer Media will produce episodic scripted and unscripted series across television and digital platforms; create compelling content for brand clients; and build a consumer-facing digital destination offering short-form content for millennial audiences…….Ford Motor Company is expanding its crowd-sourced shuttle service Chariot to New York City. Chariot offers commuters, some of whom live in what Ford calls “transit deserts”—areas that are not within walking distance of public transportation—a new way of getting from point A to point B. During typical commuting times, Chariot shuttles will travel to busy areas where people work, then bring them back at the end of the day. The service first launched in the San Francisco Bay area…… The advertising industry’s Trustworthy Accountability Group (TAG) has awarded its first set of “Certified Against Malware” Seals to nine companies: AppNexus, DataXu, Google, LKQD, OpenX, Publishers Clearing House, Rocket Fuel, Sovrn and The Media Trust.

29% OF ADULTS STREAM SVOD DAILY New consumer research from Leichtman Research Group (LRG) finds 64% of all US households have a subscription video on-Demand (SVOD) service from Netflix, Amazon Prime and/or Hulu— up from 47% in 2014. Among those who have an SVOD service, 51% have more than one of these services—up from 35% in 2014. Use of SVOD is also rising. LRG says 29% of all adults stream an SVOD service daily—up from 16% in 2015. Younger adults are the most active streamers, with 51% of all ages 18-34 streaming an SVOD service daily—up from 33% in 2015. These findings are based on a survey of 1,207 households nationwide and are part of a new LRG study, Emerging Video Services XI. As the title indicates, this is LRG’s 11th annual study on the topic. The study found that 62% of pay-TV subscribers have an SVOD service— compared to 72% of pay-TV non-subscribers with a TV. 83% of those with an SVOD service subscribe to Netflix. 75% of those with Netflix also have a pay-TV service—down from 85% in 2012. “Nearly two-thirds of all households have an SVOD service, and over half of this group has more than one of the major SVOD services,” said LRG president Bruce Leichtman.

ACCOUNT ACTIONS A report by MediaPost says luxury-goods giant Richemont has selected WPP’s MediaCom to handle its estimated $400 million global media planning and buying account. Estimated spending in the U.S. is $135 million. The business has been handled by Publicis Media agencies. Richemont brands include Montblanc, Piaget, Cartier and Alfred Dunhill……The Brooklyn Nets have named Translation AOR, with a new campaign due before the 2017-18 NBA season.

AVAILS

WROC-TV8, a CBS Affiliate in Rochester NY seeks a Director of Sales to be responsible for leading the operations of the Sales Department. The DOS works with the sales team, and within established department guidelines, to increase sales volume. The successful Director of Sales will be active in the community, building business and strong relationship and knowledge of the local economic landscape. Bachelor’s Degree in Marketing, Advertising, Communications, or related field preferred. Minimum five years’ experience in sales, preferably in the media field. CLICK HERE to apply. EOE.

Bloom Ads seeks an Associate Media Director, Digital & Programmatic Strategy, Los Angeles, CA. Responsible for establishing strong relationships with clients and partners which includes being the primary point of contact for day-to-day management of client business. The ideal candidate will have senior level client negotiation, cross platform digital planning and buying, extensive programmatic strategy and management experience with the ability to write clearly and to make lively, imaginative but substantive presentations. Send your resume, cover letter and salary requirements to [email protected] and use “AMD, Digital & Programmatic Strategy” in the subject line.

KFVS-TV, the Raycom-owned CBS affiliate in Cape Girardeau, MO seeks a dynamic Director of Sales. The candidate must be an innovative leader who knows how to maximize revenue on all platforms. A successful track record driving LOCAL and DIGITAL revenue. Must have experience coaching, training and leading team members to consistently grow market share and new revenue streams. Three years television sales management experience and college degree preferred If qualified, please submit resume with your application HERE. No calls please. EOE/M/F/D/V

Sports Radio Account Executive, WCMC-FM, Raleigh NC. We’re looking for a professional with a positive outlook, incredible drive, and tenacious “can do” attitude! This position will focus on managing and growing existing station key accounts as well as developing new business on 99.9 The Fan ESPN Radio, Buzz Sports Radio and a host of other sports related digital and event marketing opportunities. CLICK HERE for more info or to apply. EOE M/F. All CBC properties are tobacco free. Capitol Broadcasting Company participates in E-Verify.

Entravision, Boston MA, is looking for an extraordinary ad sales professional who wants to join a dynamic team as the Digital Sales Manager. This person will maximize advertising revenue by selling to digital focused advertising agencies and direct clients. Must aggressively manage new business development opportunities with key accounts and additional accounts. Digital advertising sales experience is required; prefer 2+ years of digital sales experience, with key agency contacts. To apply, send cover letter/resume to: Carlos Sporleder, Digital Regional Manager, [email protected]. EOE.

Summer is tough. Like most pudgy guys, I prefer ‘light jacket’ weather. I like to hide the fact that I haven’t worked out during the past two decades. – Jim Gaffigan

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------SPOTS N DOTS The Daily News Of TV Sales August 1, 2017 Phone: 888-884-2630