The Tennessean

10-13-04

E.W. Scripps Co., the parent company of Nashville-based Shop At Home network, is purchasing Great American Country for $140 million cash.

A 24-hour country music video network launched in 1996, Great American Country is distributed via cable and satellite systems to about 34 million households nationwide. The network is a wholly owned subsidiary of Denver-based Jones Media, a privately held company that also runs the Jones Radio Networks, a provider of syndicated radio content.

With the purchase, Cincinnati-based Scripps will add GAC to a lineup of national networks that also includes the Food Network, Home & Garden Television, the DIY - Do It Yourself Network and Shop At Home. Its television properties have headquarters in Knoxville.

The diversified media company also owns 17 daily and community newspapers, including The Commercial Appeal in Memphis and The Knoxville News Sentinel, more than a dozen broadcast TV stations and United Media, licenser of the Peanuts and Dilbert comic strips.

Great American Country, a compebreastor of MTV-owned CMT, has a studio on Music Row. Along with country music videos, GAC airs original programming and the Grand Ole Opry.

''I think that this will be great for distribution,'' said Steve Buchanan, senior vice president of media and entertainment for Opry owner Gaylord Entertainment, saying it would accelerate GAC's subscriber growth. ''This really underscores that they will invest in programming, which will be good for the Opry and country music.''

The deal provides ''great synergy'' in content and advertising for Scripps, said Nashville media analyst Robert Unmacht, noting that Scripps' cable channels target women ages 25-54, as does GAC.

''It's a great acquisition. It's not that strong a network, but it's a great fit with (Scripps). They have a good collection of specialty cable channels. And it keeps it all in the Tennessee family.''

''Adding GAC to our portfolio of popular lifestyle television networks is consistent with the long-term strategy for growth that Scripps set into motion 10 years ago with the launch of HGTV,'' Kenneth Lowe, Scripps' president and chief executive officer, said in a statement. A Scripps representative could not be reached for further comment.

Jones Media's cable TV roots date back to 1967, when owner Glenn R. Jones formed Intercable, a cable system with 1.5 million households at its peak. Related cable businesses have been sold off over the years, and GAC had been its sole remaining cable property.

''(The sale) won't hurt Jones,'' Unmacht said. ''They made a lot of money on cable, and they basically do what they want to do now.''

Scripps said it intends to maintain existing cross-promotion arrangements between GAC and Jones Radio Networks.

The deal may result in some changes to Great American Country, Unmacht said.

''It's not going to be bad change,'' he said. ''They'll have more resources, and that's a good thing. It's going to a very competent operator that really knows what they're doing.''

GAC President Jeff Wayne did not return a phone message left at his Colorado office.

The transaction is subject to federal regulatory approval, but it's expected to be complete by late November.