Cox Communications today signed a letter of intent to exchange our 25% ownership interest in Discovery Communications for $1.275 billion in cash and ownership of Travel Channel and related businesses. Cox was an original investor in Discovery in 1986 and we’ve been delighted with the investment as Discovery has grown into one of the strongest content brands in the world. While we’ve been very pleased with the financial asset, we’re excited about the opportunity to convert it into an operational asset that generates revenues and cash flow, and to continue paying down debt with the cash proceeds.

Travel Channel, now available in nearly 90 million homes, is an impressive, growing network, and we’re excited about owning and operating it and exploring ways to leverage its unique content with other Cox businesses, including wireless ventures and Cox Enterprises’ broadcasting and newspaper businesses. When the transaction is complete, Cox would own Travel Channel, travelchannel.com and Antenna Audio, which produces audio and multimedia content used at museums and other attractions worldwide. Here’s the press release issued this morning by Discovery, announcing the letter of intent. The deal is expected to close by mid-May.