Key Points
- Sinclair has purchased an 8.2% stake in the E. W. Scripps Company as both sides discuss a possible combination of their operations.
- Scripps said its board will “protect the company…from the opportunistic actions of Sinclair” and others.
- Sinclair has not made a public offer to acquire Scripps as of Monday morning.
Executives at Sinclair, Inc. have confirmed their interest in acquiring some or all of the E. W. Scripps Company after holding on-and-off discussions with the national television broadcaster for several months, according to a regulatory filing made on Monday.
The filing disclosed Sinclair recently acquired an 8.2 percent stake in Scripps, a possible first step toward a hostile takeover if Scripps rejects its advancements to merge.
Scripps is one of two companies that Sinclair has pursued since the start of the year. The company also made a play for peer broadcaster TEGNA, according to the Wall Street Journal. Nexstar is in the process of acquiring TEGNA for more than $6 billion, assuming federal regulators ease ownership rules that allow the transaction to go through.
A tie-up between Sinclair and Scripps would create one of the largest local TV station groups in the country. Scripps owns more than 60 local TV stations in dozens of cities — including Cincinnati, Denver, Detroit and Phoenix — as well as the national networks Ion, Court TV and Scripps News. Scripps also owns Nuvyyo, a Canadian company that manufactures the popular Tablo line of digital video recorders (DVRs).
Sinclair owns or operates nearly 200 local TV stations across the country, as well as national networks Roar, Comet, Charge, The Nest and Pickleball TV. It also owns the international sports network Tennis Channel, and has a stake in the Chicago regional sports channel Marquee Sports Network.
It wasn’t clear if Scripps’ interest in Sinclair was predicated mainly on its local TV station portfolio, or if the company was willing to acquire all of its businesses. In August, Sinclair said it was conducting a “strategic review” of its own business, with the goal of spinning out or selling certain assets while focusing on growth opportunities. A
Any acquisition of Scripps would likely involve the assumption of a significant amount of debt. The broadcaster refinanced around $1.3 billion in term loans earlier this year, pushing out their maturity dates to 2028 and 2029.
On Monday, shortly after Sinclair disclosed its acquisition of stock, a Scripps spokesperson said the broadcaster was “focused on driving value for all of the company’s shareholders through the continued execution of its strategic plan,” and that it would continue to prioritize “only what is in the best interest of all of the company’s shareholders as well as its employees, and the many communities and audiences it serves across the United States.”
“The company’s board has and will continue to evaluate any transactions and other alternatives that would enhance the value of the company and would be in the best interest of all company shareholders,” the spokesperson affirmed. “Likewise, the board will take all steps appropriate to protect the company and the company’s shareholders from the opportunistic actions of Sinclair or anyone else.”
Sinclair has not made a public offer to acquire Scripps, and it is unclear when or if it intends to do so.
