Post by : Bianca
Haleem
In a significant shake-up of the U.S. broadcasting sector, Sinclair Broadcast Group, the second-largest TV station operator in the nation, has made a daring proposal to acquire E.W. Scripps Co. for $7 per share for the stock it does not currently own. This initiative follows Sinclair's recent announcement of a 9.9% stake acquisition in Scripps.
With Sinclair operating across 185 stations in 85 markets, the merger aims to integrate Scripps, which includes over 60 stations in more than 40 markets. Should the proposal be accepted, Scripps shareholders would represent about 12.7% of the new entity, showcasing a notable consolidation trend in local broadcasting in the U.S.
Proposal Highlights and Payment Details
The offer features $2.72 in cash alongside $4.28 in Sinclair stock for each Scripps share, reflecting a notable 200% premium compared to Scripps’ average trading price over the past 30 days before Sinclair's significant share purchases began. Scripps shareholders will have the option to receive either an all-cash or an all-stock payment, subject to specific proration limits included in the proposal.
The merger is envisioned to yield a company valued at approximately $2.9 billion with expected cost synergies of about $325 million. Sinclair believes that the deal can comply with current Federal Communications Commission (FCC) regulations, including the 39% national ownership cap, with minimal divestitures needed.
Context within the Industry
This proposal is part of a wider trend of consolidation within the U.S. television market. Nexstar Media Group, the largest station owner with 201 stations, is working on finalizing its $6.2 billion acquisition of Tegna, which handles 64 stations. Sinclair's bid portrays the escalating competition among media corporations seeking to broaden their outreach and market influence.
Sinclair’s CEO, Chris Ripley, has assured that operations will have substantial significance in both Cincinnati, Scripps’ headquarters, and Hunt Valley, Maryland, Sinclair's home base. The new company may continue with the E.W. Scripps name or select an entirely new corporate identity, as per Ripley’s insights.
Scripps has acknowledged the receipt of this unsolicited offer and mentioned that its board will thoroughly assess the proposition to ascertain the best interests of its shareholders, employees, and the communities served. A response from Scripps is anticipated by December 5, 2025.
Industry analysts suggest that this proposed merger could significantly alter local media landscapes, producing one of the largest station groups in the country and potentially fueling further consolidation within broadcasting.
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