CBS Sells All of Cable Network to Discovery

CBS Corp., the top-rated U.S. broadcaster, said it has sold all of its CBS Eye on People cable network to Discovery Communications Inc., changing an agreement to sell half of the channel and run it as a joint venture.

Terms of the cash sale weren’t disclosed. CBS in July had agreed to sell half the money-losing channel to Discovery in an attempt to improve its programming and distribution. Eye on People, with 11 million subscribers, features documentaries and other programs on personalities.

The companies said they revised the terms to a complete sale because the network would be better run and managed under one owner. The move marks a step backward in CBS’ efforts to expand in the cable TV business and gives Discovery another network in its roster, which also includes the Learning Channel and Animal Planet. CBS owns the Nashville Network and Country Music Television but little else in cable.

Discovery will run the network, to be called Discovery People, out of its Bethesda, Md., offices. The new name and logo will debut on Jan. 11. Discovery said it plans to continue the network’s focus on programming about people and personalities and to use CBS as one of its producers.

The network, which CBS launched in March 1997, will be distributed over analog and digital cable systems, Discovery said.

Discovery has experience with taking over a struggling cable network and turning it around. The company bought the Learning Channel in the early 1990s and has significantly boosted its subscriber base, which now numbers about 68 million.

Closely held Discovery is owned by Tele-Communications Inc.’s Liberty Media unit; Cox Communications Inc.; Advance/Newhouse Communications; and John Hendricks, the company’s founder and chairman.

CBS shares rose $1.06 to close at $32 on the New York Stock Exchange.