DISCOVERY COMMUNICATIONS, INC. (NASDAQ:DISCA) Files An 8-K Completion of Acquisition or Disposition of Assets
Item 2.01.Completion of Acquisition or Disposition of Assets.

As previously disclosed, on July 30, 2017, Discovery Communications, Inc. (the “Company”) entered into a Preferred Share Exchange Agreement (the “Exchange Agreement”) with Advance/Newhouse Programming Partnership, a New York general partnership (“ANPP”), to which the Company agreed to issue a number of shares of a newly designated Series A-1 Convertible Participating Preferred Stock of the Company, par value $0.01 per share (the “Series A-1 Preferred Stock”), and a number of shares of a newly designated Series C-1 Convertible Participating Preferred Stock of the Company, par value $0.01 per share (the “Series C-1 Preferred Stock”), to ANPP in exchange for all of ANPP’s shares of the Company’s Series A Convertible Participating Preferred Stock, par value $0.01 per share (the “Series A Preferred Stock”), and all of ANPP’s shares of the Company’s Series C Convertible Participating Preferred Stock, par value $0.01 per share (the “Series C Preferred Stock,” and such transaction, the “Exchange”).

On August 7, 2017, upon the terms set forth in the Exchange Agreement, the Company and ANPP completed the Exchange (the “Closing”), and the Company issued 7,852,582 and four-ninths (4/9ths) shares of Series A-1 Preferred Stock and 6,218,592.5 shares of Series C-1 Preferred Stock to ANPP in exchange for 70,673,242 shares of Series A Preferred Stock and 24,874,370 shares of Series C Preferred Stock held by ANPP.

The foregoing description of the Exchange Agreement and the transactions contemplated thereby is not complete and is subject to and qualified in its entirety by reference to the Exchange Agreement, a copy of which was filed as Exhibit 10.4 to the Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission (“SEC”) on July 31, 2017, and the terms of which are incorporated by reference herein.

Item 3.02.Unregistered Sales of Equity Securities.

The information set forth in Item 2.01 of this Current Report on Form 8-K is incorporated by reference into this Item 3.02.

The shares of the Series A-1 Preferred Stock and Series C-1 Preferred Stock were issued in reliance on the exemption set forth in Section 3(a)(9) of the Securities Act of 1933, as amended, for securities exchanged by the issuer and existing security holders where no commission or other remuneration is paid or given directly or indirectly by the issuer for soliciting such exchange.

Item 3.03.Material Modification to Rights of Security Holders.

The information set forth in Item 2.01 of this Current Report on Form 8-K is incorporated by reference into this Item 3.03.

Nine Series A Rights (as defined in the Rights Agreement (as defined below)) were attached to each share of Series A-1 Preferred Stock, and four Series C Rights (as defined in the Rights Agreement) were attached to each share of Series C-1 Preferred Stock, issued to the terms of the Exchange Agreement and all in accordance with the terms of the Company’s Rights Agreement, dated as of September 17, 2008, between the Company and Computershare Trust Company, N.A., a national banking association (the “Original Rights Agreement”), as amended by Amendment No. 1 to the Rights Agreement, dated as of December 10, 2008 (“Amendment No. 1 to Rights Agreement”), and Amendment No. 2 to the Rights Agreement, dated as of July 30, 2017 (“Amendment No. 2 to Rights Agreement,” and together with the Original Rights Agreement and Amendment No. 1 to Rights Agreement, the “Rights Agreement”). The Rights attached to the shares of Series A Preferred Stock and shares of Series C Preferred Stock disposed of by ANPP to the Exchange Agreement were cancelled in accordance with the terms of the Rights Agreement upon completion of the Exchange.

The foregoing description of the Rights Agreement is not complete and is subject to and qualified in its entirety by reference to the Rights Agreement, the terms of which are incorporated by reference herein. The Original Rights Agreement was filed as Exhibit 4.5 to the Registration Statement on Form S-4 filed by the Company with the SEC on June 11, 2008; Amendment No. 1 to Rights Agreement was filed as Exhibit 4.1 to the Current Report on Form 8-K filed by the Company with the SEC on December 11, 2008; and Amendment No. 2 to Rights Agreement was filed as Exhibit 4.1 to the Current Report on Form 8-K filed by the Company with the SEC on July 31, 2017.

Item 5.03.Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.

The information set forth in Item 2.01 of this Current Report on Form 8-K is incorporated by reference into this Item 5.03.

On August 7, 2017, the Company filed with the Secretary of State of the State of Delaware a Certificate of Designation for the Series A-1 Preferred Stock (the “Series A-1 Certificate of Designation”) and a Certificate of Designation for the Series C-1 Preferred Stock (the “Series C-1 Certificate of Designation”) setting forth the terms of the Series A-1 Preferred Stock and Series C-1 Preferred Stock, respectively. Copies of the Series A-1 Certificate of Designation and the Series C-1 Certificate of Designation are filed with this Current Report on Form 8-K as Exhibit 3.1 and Exhibit 3.2, respectively, and are incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d)Exhibits. The following exhibits are being filed herewith:

Discovery Communications, Inc. Exhibit
EX-3.1 2 exhibit31-seriesax1certifi.htm EXHIBIT 3.1 Exhibit Exhibit 3.1CERTIFICATE OF DESIGNATIONOFSERIES A-1 CONVERTIBLE PARTICIPATING PREFERRED STOCKOFDISCOVERY COMMUNICATIONS,…
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About DISCOVERY COMMUNICATIONS, INC. (NASDAQ:DISCA)

Discovery Communications, Inc., (Discovery) is a global media company. The Company provides content across multiple distribution platforms, including pay-television (pay-TV), free-to-air and broadcast television, Websites, digital distribution arrangements and content licensing agreements. Its segments are U.S. Networks, which consists principally of domestic television networks and Websites; International Networks, which consists primarily of international television networks and Websites; Education and Other, which consists principally of curriculum-based product and service offerings, and production studios, and Corporate and Inter-segment Eliminations. It distributes customized content in the United States, and over 220 other countries and territories in over 40 languages. The Company’s global portfolio of networks includes television brands, such as Discovery Channel, TLC, Animal Planet, Investigation Discovery, Science and Velocity (known as Turbo outside of the United States).