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Growing Assets Make Scripps Networks Ripe for Takeover

Scripps Networks Interactive management has set its sights firmly on building up, not selling out. But that doesn't mean the company isn't wearing a large takeover bull's-eye.

Here are the main reasons why: In the 15 months since the company spun off from E.W. Scripps, it has expanded rapidly, buying up related Web sites and rolling out around the world. Scripps Networks' Food Network and HGTV are picking up viewers as consumers look for leisure activities closer to home. Another factor is that Scripps charges cable system operators significantly lower fees compared to other entertainment networks for carriage of its services, meaning there's plenty of room for affiliate revenue growth.

Finally, Scripps has the benefit of owning practically everything it makes and its content can easily be broken down into segments for online and mobile exploitation. The company, with a market cap of $6 billion, also owns DIY, the Cooking Channel and Great American Country.

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