Oprah Winfrey Sells Part of OWN Stake -- WSJ
December 05 2017 - 3:02AM
Dow Jones News
By Joe Flint
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (December 5, 2017).
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, which is the parent company of
several popular cable networks including HGTV and which has
majority control of the Food Network.
Write to Joe Flint at joe.flint@wsj.com
(END) Dow Jones Newswires
December 05, 2017 02:47 ET (07:47 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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