This story was delivered to BI Intelligence "Digital Media Briefing" subscribers. To learn more and subscribe, please click here.

Discovery Communications announced that it would acquire Scripps Networks for $14.6 billion, a total which includes the assumption of roughly $2.7 billion of debt.

Discovery is a global media company, while Scripps owns six popular US national TV networks. Together, the combined company will control roughly 20% of ad-supported pay TV US viewership.

The two companies previously held talks about merging in 2013 and the beginning of 2014 but did not reach an agreement at the time.

The merger of the companies seems to have sound logic behind it:

They have a similar focus on nonfiction content offerings. Discovery offers nonfiction and lifestyle programming — with networks such as Discovery Channel, TLC, and Animal Planet — while Scripps is a leader in lifestyle programming, with networks such as HGTV, Food Network, and Travel Channel. The companies will be able to combine their similar catalogs, and could be the standout leader in the space in the coming years.

Discovery offers nonfiction and lifestyle programming — with networks such as Discovery Channel, TLC, and Animal Planet — while Scripps is a leader in lifestyle programming, with networks such as HGTV, Food Network, and Travel Channel. The companies will be able to combine their similar catalogs, and could be the standout leader in the space in the coming years. They are positioned well to appeal to female viewers. The merged company will control four of the top five networks with the highest percentage of female viewers out of the top 20 US cable networks, according to Nielsen data cited by The Wall Street Journal. These networks are Discovery’s Investigation Discovery and TLC, and Scripps’ HGTV and Food Network.

The merged company will control four of the top five networks with the highest percentage of female viewers out of the top 20 US cable networks, according to Nielsen data cited by The Wall Street Journal. These networks are Discovery’s Investigation Discovery and TLC, and Scripps’ HGTV and Food Network. They will boast a sizable original content offering. Scripps and Discovery will annually produce roughly 8,000 hours of original programming. This is 13 times higher than Netflix’s 600 hours of original content production in 2016, and 8 times higher than Netflix's planned 1,000 hours of original content production for 2017. Amazon hasn’t released numbers for its number of hours of content.

Scripps and Discovery will annually produce roughly 8,000 hours of original programming. This is 13 times higher than Netflix’s 600 hours of original content production in 2016, and 8 times higher than Netflix's planned 1,000 hours of original content production for 2017. Amazon hasn’t released numbers for its number of hours of content. They are both focused on creating content for digital platforms. In 2016, Discovery invested $100 million into Group Nine Media — the publisher of NowThis and Thrillist — and Scripps partnered with Snap to develop Food Network and HGTV shows for Snapchat earlier this year. The combined company will be home to nearly 7 billion monthly video streams monthly, which is comparable to Buzzfeed’s monthly view count of roughly 7 billion in May 2016, and should position it well to compete for younger millennial audiences.

In 2016, Discovery invested $100 million into Group Nine Media — the publisher of NowThis and Thrillist — and Scripps partnered with Snap to develop Food Network and HGTV shows for Snapchat earlier this year. The combined company will be home to nearly 7 billion monthly video streams monthly, which is comparable to Buzzfeed’s monthly view count of roughly 7 billion in May 2016, and should position it well to compete for younger millennial audiences. They are better positioned to launch a skinny bundle offering. The combined company may benefit from its larger offering of programming, should it decide to launch its own in skinny bundle. This is important as cord cutting hits record levels in Q1 of this year, and the combined company looks to hedge against future losses associated with it.

The combined company may benefit from its larger offering of programming, should it decide to launch its own in skinny bundle. This is important as cord cutting hits record levels in Q1 of this year, and the combined company looks to hedge against future losses associated with it. They are positioned well to expand internationally. Fifty percent of Discovery’s revenues are from international sales, and Scripps owns a stake in British media company UKTV and acquired an interest in Polish broadcaster TVN in 2015. On the other hand, Scripps’ programming will be expanded into a broader overseas audience through Discovery’s global distribution, as its networks are available in more than 200 countries and territories.

To receive stories like this one directly to your inbox every morning, sign up for the Digital Media Briefing newsletter. Click here to learn more about how you can gain risk-free access today.