Cox Communications has announced its intent to form a joint venture with Scripps Networks Interactive for ownership and management of Travel Channel Media. Scripps will control the joint venture and the network will be run as part of the company’s portfolio of lifestyle media brands. This concludes an exploratory process that Cox began with their exclusive advisors Goldman, Sachs & Co. in June.
Under the terms of the agreement, which is effective today and anticipated to close over the next few months, Cox will maintain a 35 percent stake in Travel Channel Media while Scripps will have a 65 percent interest. Cox will contribute the Travel Channel and Scripps will contribute $181 million in cash to a newly created partnership. The partnership, in turn, will take on $878 million in third-party debt that will be guaranteed by Scripps and indemnified by Cox, with the proceeds to be distributed to Cox.