Sinclair Launches Unsolicited Takeover Bid for Scripps
Sinclair Broadcast Group has made a significant move in the broadcasting industry by launching an unsolicited takeover bid for E.W. Scripps Co. The proposal, disclosed in an SEC filing, offers $7 per share for the stock that Sinclair does not already own. Along with the bid, Sinclair announced that it has acquired a 9.9% stake in Scripps.
Details of the Takeover Bid
The recent movement comes in the wake of Sinclair buying an 8.2% stake in Scripps’ common shares last week, indicating ongoing acquisition discussions. Sinclair operates 185 TV stations across 85 markets, while Scripps manages over 60 stations in more than 40 markets.
Under Sinclair’s plan, if the acquisition is finalized, existing Scripps shareholders would own approximately 12.7% of the combined company. This bid also surfaces as Nexstar Media Group, the largest U.S. television station ownership group, pursues a $6.2 billion deal to acquire Tegna, which operates 64 stations.
Regulatory Considerations
Sinclair is currently navigating regulatory constraints, specifically the Federal Communications Commission’s (FCC) 39% ownership cap on television station reach. They expressed confidence that the acquisition could proceed under the existing rules with limited divestitures.
In their filing, Sinclair issued a deadline for Scripps to respond to their proposal by December 5, 2025. The combined entity is expected to maintain significant operations in both Cincinnati, home to Scripps, and Hunt Valley, Maryland, where Sinclair is headquartered.
Proposal Structure and Financial Insights
- Proposed share value: $7.00, including:
- $2.72 in cash
- $4.28 in common stock of the combined company
- Proposed price represents a 200% premium to Scripps’ average share price over the previous 30 days.
- The combined Sinclair-Scripps company is estimated to have a market capitalization of $2.9 billion.
- Projected cost synergies are approximately $325 million.
Sinclair CEO Chris Ripley communicated a willingness to preserve the E.W. Scripps name or potentially choose a different corporate identity for the new entity. In response to the takeover offer, Scripps has acknowledged receipt and stated it would conduct a thorough review to ensure the best outcome for its shareholders, employees, and communities.
This proposed takeover by Sinclair marks a notable episode in the competitive television landscape, as companies consolidate and adjust to evolving market conditions.
