Sinclair Broadcast Group is making a bid to buy Scripps Television Stations
Sinclair Broadcast Group has made an unsolicited offer to buy out rival station owner E.W. Scripps just a week after it was revealed that it was acquiring shares of the company’s stock.
Sinclair filed a statement Monday with the Securities and Exchange Commission saying it would offer Scripps $7 per share, consisting of $2.72 in cash and $4.28 in combined company common stock. The price is a 200% premium above the 30-day average for Scripps shares as of Nov. 6.
Sinclair disclosed on November 17 that it had acquired a stake in Scripps through the acquisition of publicly traded stock. Scripps, which operates 61 television stations and owns the ION network, is valued at about $393 million.
Scripps, based in Cincinnati, said in a statement that the company’s board “will carefully review and evaluate any proposals, including Sinclair’s unsolicited proposal.”
The statement added that the board “will act in the best interests of the company and all of its shareholders as well as its employees and the many communities it serves throughout the United States.”
The company’s stock rose about 7.5% on news of Sinclair’s offer, closing at $4.43 per share on Monday afternoon.
Taking over Scripps would be culturally jarring for the local newsrooms at its stations. The company was founded in 1878 with a chain of daily newspapers that defined itself through journalistic independence. The company’s long-standing slogan is “Give Light.”
The Sinclair district of Baltimore is known for the conservative politics of its owners, led by David D. Smith, whose views have been amplified by local television news coverage of the company over the years.
Sinclair recently tried to flex her muscles when she pulled a “Jimmy Kimmel Live!” Its ABC affiliate was suspended in September after the late-night host made comments about the political affiliation of the man accused of killing right-wing political activist Charlie Kirk.
Sinclair demanded that Kimmel make a “significant donation” to Kirk’s organization Turning Point USA in addition to an apology. Nothing was shown, and a week later, Sinclair aired the program again without any concessions from ABC.
Regardless of political leanings, all major TV ownership groups have urged the FCC to raise the maximum area their outlets can cover in the country.
TV station owners have limited access to 39% of the country, which the companies say puts them at a disadvantage in competing against tech giants who have no such restrictions in their media endeavors.
While consumer advocates believe consolidation will reduce the diversity of voices in communities, television executives have argued that it is no longer economically viable to have multiple station owners in one market, often covering the same major stories.
The merger would also give TV station owners more leverage in their negotiations over the carriage fees they receive from cable and satellite providers. These fees are vital as TV stations struggle to maintain advertising revenue due to declining ratings and more consumers shift to video streaming platforms.
Sinclair’s attempt to buy Scripps follows its failed attempt to acquire Tegna, which agreed to a $6.2 billion deal to merge with Nexstar Media Group. The deal will require regulatory approval because it will give Nexstar stations the ability to reach 80% of the United States
Station owners calling for consolidation had hoped to have an ally in Trump-appointed FCC Chairman Brendan Carr.
But a social media post suggested President Trump may be wary of the merger, saying it could give greater influence to broadcast networks NBC and ABC. The president has strongly criticized news coverage by both networks, even threatening to go after their television stations’ licenses.