Oprah Winfrey Sells Part of Stake in OWN Network to Discovery
December 04 2017 - 2:31PM
Dow Jones News
By Joe Flint
Discovery Communications Inc. is taking majority control of OWN,
the cable network it co-owns with Oprah Winfrey.
Under the terms of the deal, Discovery said it has purchased
24.5% of OWN for $70 million from Ms. Winfrey's company Harpo Inc.
Ms. Winfrey's Harpo will still hold a 25.5% stake in OWN, which had
previously been a 50/50 joint venture, and Ms. Winfrey will
continue as chief executive of the network.
As part of the sale, Ms. Winfrey extended her contractual
relationship with the network through 2025. This is the first time
Ms. Winfrey has taken any money out of OWN.
OWN launched in 2011 and initially struggled to establish itself
with viewers. In recent years, however, its ratings have improved
thanks to original dramas including "Queen Sugar" and
"Greenleaf."
By taking majority ownership in OWN, Discovery will now be able
to include its results on its balance sheet. "This transaction
allows Discovery and Oprah to unlock more value from our
partnership," Discovery Chief Executive David Zaslav said in a
statement.
Discovery is also in the process of closing its $14.5 billion
acquisition of Scripps Networks, parent company of several popular
cable networks including HGTV and majority control of the Food
Network.
Write to Joe Flint at joe.flint@wsj.com
(END) Dow Jones Newswires
December 04, 2017 14:16 ET (19:16 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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