$17 million deal does note include five Scripps-owned TV stations that carry the network; those are for sale separately.
The E. W. Scripps Co. and Jewelry Television today reached agreement on a transaction in which Jewelry Television will acquire assets of the Shop At Home television network.
Jewelry Television will pay Scripps $17 million for fixed assets, including Shop At Home’s building and real estate, satellite uplink facilities, information technology systems, the network’s call center, Web site and production studios.
Jewelry Television also intends to assume a number of agreements that Shop At Home has with television stations and operators of cable and satellite television systems to carry the network’s programming.
The deal is expected to be completed by the end of June.
As a result of the Jewelry Television transaction, Scripps is revising the estimated charge it expects to record during the second quarter related to the Shop At Home divesture. The company now expects to record an after-tax charge of between $35 million and $45 million compared with the previously anticipated charge of up to $60 million.
Jewelry Television says that it intends to continue scaled-down operations of Shop At Home and will retain a number of the network’s employees. Shop At Home employees retained by Jewelry Television will still be eligible for severance packages and career transition services from Scripps.
The transaction with Jewelry Television does not include the five Shop At Home-affiliated broadcast television stations that Scripps owns in San Francisco, Boston, Cleveland, Raleigh-Durham, N.C., and Bridgeport, Conn. Scripps has retained the services of a broker and is actively seeking a buyer for the stations.
In the meantime, as part of the transaction, Scripps said the five television stations will air a combination of Shop At Home and Jewelry Television programming.