Discovery Communications (NASDAQ:DISCA) is far into discussions with Scripps Network in acquiring the American media company, after Viacom drops out of the bidding due to the potential risk.
Scripps Network is most famous for its channels such as HGTV, Travel Channel, and Food Network.
The deal between the two could be worth over $11 billion, at a projected $90 per share, a source told CNBC.
Scripps shares closed on Wednesday at $84.07.
The source also stated that the bid is expected to be 70 percent cash and 30 percent stocks.
The acquisition would bring together Scripps' HGTV, Travel Channel and Food Network and Discovery's Animal Planet and Discovery Channel, giving the combined company more pricing power with which to negotiate with cable TV operators such as Comcast Corp and Charter Communications Inc., according to Reuters.
It is predicted that the acquisition of Scripps can come as early as the following week, according to sources.
Cable TV is facing fierce competitions as most consumers have turned to online streaming sites such as Netflix and Amazon, as those companies offer a more mobile option for viewers.
By adding Scripps programming, Discovery, which has a market capitalization of $15.2 billion, could launch its own "skinny bundle" of networks at a low cost for viewers. The deal would also help Discover to sell its content overseas more easily, according to Reuters.
Scripps has been a media company that many other network companies have tried to take over due to its popular channels, but also because the Scripps family trust that controlled the company was dissolved five years ago.
The potential merge of these two networks and combining popular cable TV channels could help Discovery Communications, as its shares have plummeted back in 2014. Since then, the company has still been on a steady decline, but the company hopes to turn it around by acquiring Scripps Network.