Discovery Communications says it is buying nearly
$500 million worth of Discovery preferred stock from Advance/Newhouse
Despite the sale, Advance/Newhouse will remain
Discovery's largest shareholder with a stake of about 31%.
Discovery said the purchase is not part of the $1
billion stock repurchase program.
"Our investment in Discovery remains one of the finest moments in the
history of our company and we expect it will only become more successful as
Discovery continues to grow and flourish," said Donald E. Newhouse, president
of Advance Publications, in a statement. "We have no plan to further
reduce our ownership. Our goal is to take a small percentage of our investment
in Discovery and diversify into new acquisitions and investments that will
hopefully turn out to be as meaningful."