Discovery Networks in talks to buy Food Network owner

Discovery Networks reportedly has entered into exclusive negotiations to purchase Scripps Networks, owner of Food Network, HGTV and The Travel Channel. Earlier suitor Viacom is now out of the process. The final deal could be worth more than $12 billion, likely in a mix of cash and stock.

• Why it matters, per Axios' Sara Fischer: The added scale would give Discovery much more leverage to negotiate better distribution deals with the broadband giants.
• Bottom line: "The Scripps channels are a near-perfect fit with Discovery, which includes Animal Planet, OWN, TLC and, of course, its namesake Discovery Channel. At the very least, a combined Discovery-Scripps could have more pricing power with cable TV providers, and some analysts see the merged company offering a skinny bundle of its channels." — Paul Bond, Hollywood Reporter