With the rumors of Yahoo! Inc. (NASDAQ:YHOO) having an interest in the cable network Scripps Networks Interactive, Inc. (NYSE:SNI), experts are saying that a deal is unlikely to happen anytime soon.
Nicholas Carlson, Business Insider, said that the Internet company received nearly $10 billion for its share in Alibaba Group Holding Ltd (NYSE:BABA) and this money is likely to be spent upon acquisitions including that of Scripps cable network. Carlson is also the author of an upcoming book “Marissa Mayer and the Fight to Save Yahoo!” Carlson added that after the initial speculations of acquiring the food division of Scripps Networks Interactive, Inc. (NYSE:SNI), the management escalated towards acquiring the complete parent company.
However, the market is not favoring the idea and Edmund Lee, Re/code managing director, said that these are only rumors with no solid foundation.
Lee said,
“Frankly, this kind of speculation is a little bit silly, Scripps Networks Interactive, Inc. (NYSE:SNI) has been on the block for at least the past year. So any company out there is going to quietly kick the tire on this thing. I wouldn’t be surprised if there were at least some kind of discussion, but I don’t think it is at all serious largely because it does not make sense for Yahoo! Inc. (NASDAQ:YHOO).”
Another expert, Jon Frott, CNBC, agreed about the interest of Yahoo! Inc. (NASDAQ:YHOO) in the target customer base of Scripps Networks Interactive, Inc. (NYSE:SNI). However, that doesn’t mean that the internet company is going to buy a complete cable network.
Another factor that support the bruit nature of this deal is the fact that Scripps Networks Interactive, Inc. (NYSE:SNI) is a slow growing company, which makes it an unattractive acquisition target for Yahoo! Inc. (NASDAQ:YHOO).
The shares of Yahoo are trading at $50.17 with current P/E ratio of 6.59.
This article has been written by Prakash Pandey.
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