Recently, leading global lifestyle network operator Scripps Networks Interactive Inc. SNI wrapped up a 52.7% stake buy in Poland’s popular multi-platform media company, TVN. The media giant bought the shares from ITI and Canal+ Group for a total cash consideration of €584 million.

However, as per Polish laws, Scripps Networks needs to raise its hold in TVN to 66% over the next three months, which will allow the company to issue a mandatory public tender offer. Moreover, the media giant had earlier decided to buy TVN entirely and take it off the Warsaw Stock Exchange.

Scripps Networks is a leading lifestyle media company which provides content for television, Internet and mobile devices. The company’s popular brands are HGTV, DIY Network, Food Network, Cooking Channel, Travel Channel and Great American Country. The company serves around 190 million viewers across North and South America, Asia, Europe, the Middle East and Africa.

On the other hand, TVN boasts a strong portfolio of networks which include TVN, TVN 7, TVN Style, TTV, TVN Turbo, TVN24 along with business news channel TVN24 Biznes i Swiat. In 2014, the company’s networks held a 22% share in the Poland market. Moreover, in the same year, the company raised it hold in Poland’s advertising revenue market to 33% stake. The company’s diverse and popular channel offerings have allowed it to command a strong market share in the country.

Hence, we believe that the acquisition of TVN stake will strengthen Scripps Networks’ presence in Europe considerably. Moreover, the media market in Poland offers strong growth potential and will enhance Scripps Networks’ advertising market opportunities to a great extent.

Meanwhile, Scripps Networks completed the acquisition of U.K.-based Travel Channel International Ltd.

Scripps Networks currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the same industry include Gray Television, Inc. GTN, Sirius XM Holdings Inc. SIRI and Discovery Communications, Inc. DISCK. All three carry a Zacks Rank #2 (Buy).

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