Discovery pushes back plans to go public a quarter

LOS ANGELES (Reuters) - Discovery and Animal Planet cable network owner and programmer Discovery Communications is delaying a deal to go public by a quarter, stakeholder Discovery Holding Co (DISCA.O) said in a filing on Thursday.

Discovery Holding and Advance/Newhouse Programming expect to combine their stakes in the company in a deal to create a publicly traded company. "This transaction is expected to be completed during the third quarter of 2008," Discovery said in a filing on Thursday.

In December they signed a letter of intent and expected the deal to close in the second quarter of 2008.

The filing on Thursday did not give a reason for the change, which comes at a time of market turmoil, including for initial public offerings.

Cable mogul John Malone's Discovery Holding reported that net earnings rose to $33.99 million or 12 cents a share for the fiscal first quarter ended in March from $20.46 million or 7 cents a share a year earlier.

Revenue rose to $189.3 million from $173.9 million, topping by about $10 million the expectations of two analysts polled by Reuters Estimates.

Discovery Holding Class A shares rose 10 percent to $25.75.

Discovery Holding owns about two-thirds of Discovery Communications, which provides programming to more than 170 countries on more than 100 networks.

It will combine its interests in Discovery Communications with the stake owned by Advance/Newhouse in a tax-free deal.

Advance/Newhouse will receive preferred shares that can be converted into one-third of the outstanding shares of the new Discovery holding company.

(Reporting by Peter Henderson; editing by Carol Bishopric)