Jones Media Networks, Ltd., is selling the Great American Country network to the E. W. Scripps Company for $140 million in cash. E. W. Scripps is the parent of Scripps Networks, which owns several lifestyle television networks.
The deal is subject to regulatory approval. Principals expect it to close by late November.
After it does, Scripps intends to maintain cross-promotion arrangements between GAC and Jones Media Networks through its subsidiary, Jones Radio Networks. JMN programs more than 5,000 radio stations.
GAC is country music video network launched in 1996. It's distributed via cable and satellite television systems nationwide to about 34 million Nielsen rated households. GAC will become the fifth national programming network operated by Scripps Networks. Other Scripps Networks brands include Home & Garden Television, Food Network, the DIY - Do It Yourself Network and Fine Living.
In a statement, Scripps said the GAC acquisition would have minimal impact on Q4 revenues. For the full-year 2005, Scripps expects the acquisition to reduce its segment profit by $5 million to $10 million. It predicts total revenue for GAC in 2004 to be about $12 million.