Sinclair, Inc.’s board of directors has authorized a comprehensive strategic review of its broadcast operations, with the goal of possibly spinning out or selling certain assets, the company announced on Monday.
The review will explore “all value-enhancing opportunities,” according to the company, including acquisitions, strategic partnerships, and business combinations with potential partners across the broadcast, media and technology sectors.
At the same time, Sinclair will consider separating its Ventures division through a spin-off, split-off or other transaction. Ventures includes diversified investments in real estate, private equity, and technology, and also includes the international sports network Tennis Channel. The company said the simultaneous evaluations reflect the board’s commitment to “unlocking the full potential” of both businesses, each of which has “distinct growth profiles and value drivers.”
“Scale wins in today’s broadcast industry, and we intend to lead that consolidation,” said Chris Ripley, the President & Chief Executive Officer of Sinclair. “Our Broadcast business’s industry-leading performance positions us as the partner of choice for value creation. Simultaneously, we expect separating Ventures will crystallize significant value that the market has overlooked within our current structure, giving us even more flexibility to drive our broadcast strategy forward.”
Sinclair noted that its Broadcast division has consistently outperformed peers, with advertising revenues increasing year-over-year in the most recent quarter despite “record political displacement.” The company added that the Ventures portfolio represents “significant additional value” through its non-broadcast holdings.
The company’s board voted unanimously to authorize the dual-track review, which Sinclair said provides “flexibility to pursue transformational opportunities without predetermined limitations on transaction structures.” The approach, it added, enables the company to execute the most compelling strategy for “today’s dynamic broadcast and media landscape.”
The announcement comes amid a wave of consolidation and strategic repositioning in the U.S. broadcasting industry, driven by changing audience habits, evolving advertising models, and increasing competition from streaming platforms. Sinclair indicated that its strong balance sheet and operational track record position it to be a catalyst in this environment.
However, the company cautioned that there is “no assurance that the strategic review will result in any transaction or other strategic change,” and it will not provide further updates unless its board approves a specific course of action or disclosure becomes required by law.
Sinclair operates one of the largest broadcast portfolios in the U.S., owning or operating more than 180 television stations in 86 markets.
