Discovery seeking control of struggling Hub Kids Network

LOS ANGELES – Discovery Communications Inc. is seeking to purchase control of The Hub from partner Hasbro Inc. and rename the children’s TV network Discovery Family to attract a wider audience, two people familiar with the plan said.

The Hub, while profitable, has struggled in a crowded field that includes Walt Disney Co.’s Disney Channel and Viacom Inc.’s Nickelodeon. Netflix Inc. and Amazon.com Inc. also have added children’s programming to their streaming services. Hasbro would have a smaller ownership stake in the renamed channel, which would target families as well as kids, said the people, who asked not to be identified because the deal isn’t final.

Taking a majority stake would give Discovery more control of operations such as programming and advertising sales.

“The kid’s space is very crowded,” Chief Financial Officer Andrew Warren said at a Bank of America conference in Beverly Hills, Calif., yesterday. “There’s a whitespace there that we can really provide for and you’re going to see and hear us talk more about co-viewership and family-oriented programming, particularly during primetime.”

- Advertisement -

The Silver Spring, Md.-based operator of cable TV networks such as Discovery Channel and Animal Planet sold a 50 percent interest in its Discovery Kids network to toymaker Hasbro for $300 million in 2009, renaming it The Hub. Hasbro characters such as G.I. Joe and My Little Pony have been a source of programming for the channel.

The Hub reached 72 million subscribers at the end of 2013, compared with about 99 million for Nickelodeon and Disney Channel, according to filings from the companies.

Discovery carried its investment in The Hub at $312 million at the end of December, while Hasbro valued its interest at $322 million, according to the filings.

The talks were reported earlier by the Wall Street Journal.

No posts to display