Discovery Communications is acquiring Scripps Networks Interactive for 14.6 billion dollars. The deal is expected to boost the combined company's negotiating leverage, with pay TV operators at a time when more people watch video online. USA TODAY
The top five executives at Scripps Networks Interactive could take severance packages worth more than $150 million combined once the company formally merges with Discovery Communications, according to a joint filing with the Securities & Exchange Commission.
Nearly two-thirds of that would go to Scripps Networks CEO Ken Lowe: a $91.9 million golden parachute, assuming his termination “immediately following the change in control,” according to the joint proxy statement/prospectus. The payment would be a mix cash, equity, pension enhancements, benefits and tax reimbursement.
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Lowe is likely to depart the company since the merger deal includes a seat created for him on Discovery’s board of directors. The agreement includes a one-year noncompete agreement.
Discovery Communications is buying Knoxville-based Scripps Networks Interactive, both companies announced Monday. The $14.6 billion purchase is expected to close in early 2018. Submitted by Discovery Communications
At the end of August, Scripps and Maryland-based Discovery announced that Discovery would buy Scripps in a cash-and-stock deal worth $14.6 billion.The deal includes Discovery’s assumption of Scripps’ $2.7 billion debt.
No decisions have been made on whether Scripps operations currently in Knoxville will remain here, said Kristin Alm, Scripps media relations director. Also unknown is how the merger will affect Scripps’ 1,000 area employees; both questions are likely to wait until Discovery takes direct control with the formal closure of the merger, expected sometime in early 2018 if given final approval by federal regulators.
Other executive severance packages named in the filing include $34.9 million for Scripps COO Burton Jablin, and almost $26 million for three executive vice presidents: nearly $12 million for Lori Hickok, $8 million for Cynthia Gibson, and $5.8 million for Mark Hale.
Those packages do not include Discovery’s purchase of stock already owned by the executives, valued at tens of millions.
Both company’s shareholders overwhelmingly endorsed the merger Friday. The combination will put Discovery’s Group Nine Media together with Scripps to offer 7 billion short online streams a month. Scripps produces its content for about half the price of Discovery, according to a Kiplinger report. Discovery announced it hopes to save $350 million over two years by merging and streamlining operations.