Discovery Reassesses The Hub

Revised license fee deal could affect goodwill
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Discovery Communications said in a Securities and Exchange Commission filing Monday that moves to amend its agreement with toymaker Hasbro regarding the fees it pays for animated programming, could lead to a goodwill writedown for its newest kid's network, The Hub.

Discovery launched the Hub, formerly Discovery Kids, in 60 million homes last October. Hasbro paid $300 million for a 50% interest in the network in 2009.

In a filing regarding a $500 million debt offering, Discovery said that it amended its agreement with Hasbro in May, which caused The Hub to revise the license fees it pays for animated programming.

Click here to read the full story at Multichannel.com.

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