Travel Channel attracts private-equity bids

By Jui Chakravorty Das and Megan Davies

NEW YORK (Reuters) – Private equity firms Kohlberg Kravis Roberts & Co, Thomas H. Lee Partners, and Providence Equity have submitted bids for Cox Enterprises' Travel Channel, a source familiar with the matter said.

The private equity firms are bidding separately for the channel in an auction expected to fetch $600 million to $700 million, sources said. The people declined to be identified because the details of the auction have not been made public.

At least two of the private equity firms are in discussions with Discovery Communications for services such as selling advertising and network-carry fees should they win control of Travel Channel, the sources said.

Discovery Communications Chief Executive David Zaslav confirmed on Wednesday that his company had held talks about taking on a role "where we would do a number of services for a fee."

But "we won't be bidding on the Travel Channel as an equity holding," he added when asked about the possibility during a presentation at Goldman Sachs Communicopia media conference.

Cox, which is privately held, is selling a 65 percent stake in the channel. Goldman Sachs is handling the auction.

Two other media companies, Scripps Networks Interactive and News Corp, remain in the auction, one of the sources said. The source added that NBC Universal, owned by General Electric Co and Vivendi SA, had bid for the channel but has recently lost interest.

The Travel Channel is known for programs such as "Anthony Bourdain: No Reservations," in which author and chef Bourdain travels around the world to showcase local cuisines; and "Bizarre Foods with Andrew Zimmern," in which food columnist and dining critic Zimmern tries out unusual delicacies such as lamb eyeballs, squirrel brains and tiger pie from places such as Tanzania and Nicaragua.

Interest in the Travel Channel has been expected to be widespread among media companies, which have seen cable networks weather the recession better than other media businesses that have been deeply hurt by the pullback in advertising.

(Additional reporting by Paul Thomasch and Anupreeta Das; Writing by Paul Thomasch; Editing by Maureen Bavdek and Gunna Dickson)