Totally recouping what it originally shelled out for the
network, Paxson Communications Corp. is selling its remaining 30 percent interest in
Travel Channel to Discovery Communications Inc. for $57.3 million in cash, officials said
DCI struck a deal to acquire controlling interest in Travel
back in November 1997, when it agreed to pay $20 million in cash, as well as annual
consulting fees, to Paxson for a 70 percent stake in the network.
With last week's transaction, DCI will be the sole
owner of Travel, just as it recently closed a deal to acquire 100 percent of CBS Eye on
Paxson had paid $75 million -- $20 million in cash and $55
million in Paxson stock -- to Landmark Communications Inc. for Travel in June 1997. So the
total compensation that Paxson is getting from DCI for Travel Channel -- $77.3 million --
is $2.3 million more than what Paxson paid originally.
That $2.3 million represents "cash prorations,"
or consulting fees due to Paxson, on top of $55 million in cash considerations for Travel,
according to a statement from Paxson.
In that prepared statement, Paxson CEO Jeff Sagansky said
the company wants to concentrate on growing its new family-oriented broadcast network, Pax
In late December, DCI also took over sole ownership of Eye
on People. DCI was only supposed to acquire 50 percent of the service originally, but CBS
Corp.'s CBS Cable decided to totally cash out of the network, which will be renamed