Discovery Communications to become publicly-traded

Television programming company Discovery Holding Co. said Wednesday it signed an agreement with Advance/Newhouse Programming Partnership to combine their stakes in Discovery Communications to form a new publicly-traded company.

Discovery Holding said the new company, named Discovery Communications Inc., will own all of Discovery and Animal Planet.

Under the terms of the agreement, Discovery Holding said it will spin off to its shareholders a subsidiary holding the networks and creative services businesses of Ascent Media Group. After the spin-off, Discovery Holding will then combine with a subsidiary of the new Discovery Communications Inc. and its shareholders will receive shares of the company.

Meanwhile, Advance/Newhouse will contribute its interests in Discovery Communications and Animal Plant to Discovery Communications Inc. in exchange for preferred stock that will be convertible into shares representing one-third of the outstanding shares of the new company.

Advance/Newhouse will then be able to elect three members of the new company's board of directors.

The company said Discovery's current management team will fill all the management positions at the new parent company.

The deal _ which still needs shareholder and regulatory approvals _ is expected to be completed in the third quarter.

Discovery Holding shares added 48 cents to close at $26.43.