- Thomson Reuters
Several Wall Street banks are set to split a $100 million payday from the deal between cable channel operators Discovery Communications and Scripps Networks Interactive.
Discovery, which owns channels like Animal Planet and Discovery Channel, said Monday it will pay $14.6 billion to acquire Scripps, adding HGTV, Travel Channel, and Food Network to its roster.
Six banks – including boutiques Guggenheim Partners, Allen & Co., and Evercore – advised on the deal.
Guggenheim and Goldman Sachs advised Discovery, and they’ll split the vast majority of about $45 million in fees, according to Jeffrey Nassof, director of consulting firm Freeman & Co.
UBS will take a small slice for advising Discovery shareholders – which include the Newshouse family, one of the richest in the world with a net worth of more than $18 billion, and billionaire telecom magnate John Malone.
Scripps’ bankers, Allen & Co. and JPMorgan, will split the lion’s share of an estimated $55 million in advisory fees, Nassof said.
Evercore will take a much smaller cut for advising the shareholders, primarily the Scripps family, which is also one of the wealthiest families on earth with a fortune north of $7 billion.