NEW YORK (AP) — Sinclair has submitted a bid to buy out E.W. Scripps for $7 per share, in a deal that could bring further consolidation across America's local TV news landscape.
Under the proposal, which Sinclair disclosed Monday, the broadcast giant would acquire all of Scripps' outstanding shares that it doesn't already own. Sinclair has already upped its stake in Scripps recently — accounting for nearly 10% of the company's class A common stock
as of Nov. 17, per regulatory filings.
The proposed $7 per share price tag would consist of both cash and stock. If approved, the deal would give Scripps' shareholders about a 12.7% stake of the combined company upon closing.
Sinclair is requesting a response from Scripps by Dec. 5.
“We are submitting an updated, actionable merger proposal,” Sinclair CEO Christopher S. Ripley wrote in a letter to Scripps’ board. He said the deal would “strengthen local journalism” and “position the combined company and employees for long-term success.”
Ohio-based Scripps acknowledged that it had received an “unsolicited acquisition proposal” from Sinclair on Monday. The company said its board would review it like any other offer — and determine next steps based on the interests of its stakeholders and "audiences it serves across the United States.”
Scripps previously said it would also protect itself from any “opportunistic actions of Sinclair or anyone else.”
Shares of E.W. Scripps Co. jumped more than 5% Monday, trading at about $4.30 apiece as of 2:30 p.m. ET. Sinclair's stock slipped just under 1%, trading around $15.50 by the afternoon.
Sinclair has been eyeing Scripps for some time. Last week, the Maryland-based company said it held months of talks “regarding a potential combination” — and maintained more broadly that increasing its scale is “essential to address secular headwinds” in the U.S. media industry, pointing to growing competition.
Just this past August, Nexstar Media Group announced a $6.2 billion deal to buy broadcast rival Tegna.
Companies like Sinclair — as well as Nexstar and Tegna — have argued that acquisitions would allow them to better compete with both bigger media and tech players vying for consumers’ attention today. But critics warn of wider homogenization of news. In other words, more and more local TV stations becoming “duplicators” of syndicated reporting — and sharing corporate owners who may decide not to air certain content.
Sinclair Broadcast Group owns, operates or provides services to 185 TV stations in 85 markets affiliated with all major broadcast networks, and it also owns the Tennis Channel. The company has a reputation for a conservative viewpoint in its broadcasts.
Meanwhile, E.W. Scripps Co. operates more than 60 local stations in over 40 markets. It also owns national news outlets Scripps News and Court TV, as well as entertainment brands like ION.
Whether or not Scripps accepts Sinclair's proposal has yet to be seen. And like all major corporate mergers, the deal would still require the regulatory greenlight. Sinclair on Monday said it was confident that its proposed transaction could be completed under existing rules.
Still, media consolidation could accelerate industrywide if the Trump administration loosens restrictions — or, perhaps more immediately, makes exceptions for certain mergers. Just last week, in efforts to complete its Tegna acquisition, Nexstar asked the Federal Communications Commission for a waiver on current rules that limit the number of stations a single company can own.
FCC Chairman Brendan Carr previously signaled openness to changing those requirements overall. But some conservatives — and Trump himself — have recently expressed disdain over the possibility of such a change leading to an expansion in networks they view as left-leaning.
“If this would also allow the Radical Left Networks to ‘enlarge,’ I would not be happy," President Donald Trump wrote on social media Sunday. The Republican particularly targeted ABC and NBC, which he claimed were a “VIRTUAL ARM OF THE DEMOCRAT PARTY.”
In response, Nexstar maintained that it believes “the landscape is ripe for regulatory reform” — and added that “we agree with President Trump that the status quo is no longer acceptable.”
