Why has Discovery Communications’ stock price doubled in the past year?The New York Times’ Brian Stelter takes a look at Discovery, which owns of 13 cable networks including TLC and Animal Planet. They are beating the street not only because their reality shows are relatively cheap to make, but because their international distribution and sales are booming.
International revenue nabbed the company $1.2 billion in 2009, out of Discovery’s $3.5 billion in total revenue, according to the NYT. Discovery and Animal Planet air in 180 countries, and plans to send TLC to 75 countries by next spring.
Much credit for the company’s success can be given to CEO David Zaslav, who quadrupled international revenues in three years. He “has woken up a sleeping new giant,” media analyst Jessica Reif Cohen of Bank of America Merrill Lynch told the Times. “I think that Discovery has the best secular growth prospects in the industry,” she said, comparing it to the Walt Disney Company 25 years ago, when Michael Eisner first took the reigns.
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