Sinclair Proposes $7-Per-Share Acquisition of Scripps

Post by : Bianca Suleiman

In a significant development for the U.S. broadcast sector, Sinclair Broadcast Group, the second-largest owner of TV stations in the country, has made a bold offer to fully acquire E.W. Scripps Co. for $7 per share, aimed at gaining control of shares it does not already possess. This proposal follows Sinclair's recent announcement of acquiring a 9.9% stake in Scripps.

Operating 185 stations across 85 markets, Sinclair plans to merge with Scripps, which manages over 60 stations in more than 40 markets. A successful takeover would allow Scripps shareholders to own approximately 12.7% of the merged entity, marking a crucial consolidation in the U.S. local broadcasting realm.

Details of the Proposed Deal

The acquisition offer features a payment of $2.72 in cash and $4.28 in Sinclair stock for each share of Scripps. This represents an impressive 200% premium compared to Scripps' average trading price over the past 30 days prior to Sinclair's investment efforts. Shareholders of Scripps can opt for either all-cash or all-stock payment options, subject to specific prorating limitations as outlined in the deal.

If the merger is finalized, it would result in a combined company with a market cap of roughly $2.9 billion, alongside projected cost efficiencies of about $325 million. Sinclair remains optimistic about navigating current Federal Communications Commission (FCC) regulations, including the 39% national ownership cap, with minimal divestitures expected.

Context within the Industry

This proposed acquisition is taking shape against the backdrop of ongoing consolidation trends within the U.S. television industry. Nexstar Media Group, the leading station owner with 201 stations, is on the verge of finalizing its $6.2 billion acquisition of Tegna, which operates 64 stations. Sinclair's bid for Scripps underscores the fierce competition among media conglomerates striving to broaden their market presence and clout.

Chris Ripley, CEO of Sinclair, reassured that vital operations will continue in Cincinnati, Scripps' headquarters, and in Hunt Valley, Maryland, where Sinclair is based. Depending on the outcome, the new entity may carry the E.W. Scripps name or adopt a fresh corporate identity.

Scripps has acknowledged the unsolicited proposal and indicated that its board will undertake a thorough review and assessment to identify the optimal course of action for shareholders, employees, and the communities it serves. A definitive response from Scripps is anticipated by December 5, 2025.

Experts suggest that if this merger goes ahead, it could significantly alter the local media landscape, resulting in one of the most substantial station groups in the U.S. and possibly spurring additional consolidation efforts within broadcasting.