By: (AP) The E.W. Scripps Co. is buying Summit America Television Inc., including Summit's 30% interest in the Shop At Home television network and its five television stations, for about $184 million in cash.
Scripps said Friday it would pay $4.05 per share for Summit America, a nearly 20% premium over Thursday's closing price.
In addition, Scripps agreed to forgive a $47.5 million loan the company extended to Summit in 2002, when Scripps bought a 70% controlling interest in Shop At Home for $49.5 million. Scripps also has agreed to forego redemption of $3 million in Summit preferred stock that Scripps holds. Those concessions push the total value of the deal to about $235 million.
Scripps also would own Summit's five television stations that broadcast Shop At Home programming: KCNS in San Francisco; WMFP in Boston; WOAC in Cleveland; WSAH in Bridgeport, Conn., and WRAY, in Raleigh-Durham, N.C. The five stations reach about 5.3 million households.
Scripps expects the merger to be completed in June.
Cincinnati-based Scripps, through its Scripps Networks division, operates the Home & Garden Television, Food Network, the DIY -- Do It Yourself Network and Fine Living cable channels. Scripps also operates 21 daily newspapers, 10 broadcast television stations, Scripps Howard News Service and United Media, which licenses and syndicates the "Peanuts" and "Dilbert" comic strips.
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