"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. 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. While it is not the typical first move in a media meger, the purchase comes at a pivotal time."
"Sinclair said in its filing that it has been in discussion with Scripps "for several months regarding a potential combination of the two companies." The filing also noted that Scripps would retain its existing debt - a significant detail in an industry facing soft advertising markets and steadily declining viewership for traditional TV. This is the second attempted large-scale TV consolidation in recent months."
Sinclair Broadcasting filed with the SEC revealing a purchase of roughly 8% of E.W. Scripps, about $15.6 million of stock. Scripps' board stated it will evaluate transactions to enhance shareholder value and will protect shareholders from opportunistic actions. The timing coincides with a pending FCC decision on ownership-rule relaxation that could enable larger media consolidations. Sinclair reported months-long discussions with Scripps about a potential combination and noted Scripps would retain existing debt, a notable factor given soft advertising markets and declining traditional television viewership. The move follows Nexstar's planned acquisition of Tegna.
Read at Poynter
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