Less Than Meets The Eye: Is The Hub In Trouble?

The much ballyhooed joint-venture between Hasbro

and Discovery Communications Inc.

, The Hub, may be in trouble, writes

Discovery Communications filed an

this morning saying that the TV network, could be worth substantially less than the company thought. The network, which caters to young kids, and carries such programs as Transformers, has only been able to generate 23,000 viewers per day, far lower than the companies initially thought when launching the venue. From the filing: "In May 2011, DCL amended its agreement with Hasbro, Inc. regarding The HUB to revise the license fees paid by The HUB for animated programs. This amendment creates a trigger event for purposes of intangible asset and goodwill impairment testing. The HUB's management is in the process of conducting a fair value analysis to support goodwill impairment testing, however the assessment is not complete and no determinations have been made. We currently expect that the evaluation will be completed during the third quarter of 2011." Shares of Discovery are up 35 cents today to $40.34, a gain of 0.88%.