Four weeks after Liberty Media Chairman John Malone called Discovery Communications stock cheap, he appears to have put his money where his mouth is.
On Friday morning, Malone doubled his position in Discovery Class A Stock with the purchase of 332,523 shares, for $ 6.6 million dollars, according to a securities filing.
This position strengthens Malone’s already hefty stake in Discovery’s Class A stock, which now exceeds 670,000. The media titan also owns 95 percent of Class B and 5.9 percent of Class C shares — together worth more than $ 412 million dollars as on Friday’s close, according to Factset.
Shares have Discovery have taken a beating since the company announced its $ 15 billion acquisition of Scripps Networks in July. At its November low, shares had fallen nearly 35 percent, on investor fears surrounding the combination’s advertising and ratings growth in the evolving media landscape.
In November, Malone made it clear in an exclusive interview with CNBC that he hasn’t lost faith in the company’s ability to compete in the direct to consumer space.
“I’m gonna bet that Discovery, with its ownership and control of its content, will be able to transition to direct consumer platforms in a reasonably efficient way,” Malone told CNBC at the time.
“And if they successfully do that, then [the stock is] dirt cheap right now. If they can partly get there, they’re still cheap,” he added.
Discovery stock, traded on the Nasdaq, closed up by nearly 5 percent on Friday.
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