MUMBAI: Scripps is reportedly moving ahead on talks with Discovery, and Viacom is out of the bidding race. TV network owners are struggling owing to a decline in subscriptions for satellite and cable services as they lose viewers to social networks and online video services.

Viacom, the owner of Comedy Central, MTV, and Nickelodeon, had earlier reportedly made an all-cash bid for Scripps, the value of which could be as much as $10.6 billion. Scripps was popular among pay-TV distributors that offer low-cost and smaller bundles of family-centric channels to budget-conscious subscribers.

Discovery Communications, the owner of TLC and Animal Planet, is reportedly offering around $90 a share for Scripps Networks Interactive, eventually closing in on a potential cable TV merger which could be worth around $12 billion. The offer was good enough to reportedly pressure Viacom Inc. to leave its efforts to buy the owner of Food Network and HGTV. Discovery and Viacom declined comment.

The companies are in the process of discussing unspecified issues and may not reach a definitive agreement until next week.

Buying Scripps, with its popular programming on travel, food, and home repair, could help Discovery reduce costs, gain negotiating leverage with distributors and expand internationally as its U.S. TV businesses face pressure.

While Discovery networks such as Investigation Discovery and TLC are no stranger to reality programming, the company’s main focus has been on shows centered on nature, science, and exploration. Its focus on non-fiction is seen as a smooth fit with Scripps, whose networks focus on travel, food, and home-improvement.

The negotiation between Discovery and Scripps may result in a deal as early as next week, though the talks could still fail.

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Discovery & Scripps reported to be discussing merger