Sinclair acquires Scripps stake in a push to merge

sinclair one explained share My friend who owns a broadcasting station EW Scripts On Monday, a move was made to move towards a merger of the companies.

Sinclair, who earned a roughly 8% position at Scripps per application, recently started a strategic review of its business, which could result in a merger. Scripps, on the other hand, has seen its challenges increase in the competitive industry and remains among the smallest of its peers.

In the filing, Sinclair said it had engaged in “constructive” discussions about a deal and believed the transaction could be completed within nine to 12 months if an agreement was reached.

If the merger goes through, synergies of $300 million based on trade multiples would be expected, Sinclair said in its filing.

Scripps’ shares rose 40% on Monday, while Sinclair’s shares rose almost 5%.

Sinclair, which bought the stock for about $15.6 million, declined to comment beyond the SEC filing.

In a statement Monday, Scripps said its board of directors “will take all appropriate steps to protect the company and its shareholders from opportunistic actions by Sinclair or anyone else.”

“Scripps’ board of directors and management are focused on creating value for all of the company’s shareholders through the continued implementation of its strategic plan,” the company said in a statement. “The board and management are aligned in doing only what is in the best interest of all of the company’s shareholders, employees, and the many communities and audiences it serves throughout the United States.”

The statement said the board continues to evaluate “all kinds of transactions and other alternatives that will increase the value of the company and be in the interest of all company shareholders.”

Broadcast TV station group owners, like other media companies, have suffered in recent years due to the shift from traditional pay TV packages to streaming. These broadcast stations often make most of their money from so-called retransmission fees paid per subscriber by traditional TV distributors.

Broadcast station owners like Sinclair have also been willing to pursue mergers as they push for deregulation under the Trump administration.

In August, Nextstar Media GroupThe largest owner of these stations agreed to buy Tegna For $3.54 billion.

Sinclair, meanwhile, is considering shutting down or splitting its venture unit, which also includes pay-TV network The Tennis Channel and recently launched marketing technology company Compulse. rebranded To the Digital Solution.

Sinclair and its advisors held talks with potential merger partners earlier this year, CNBC previously reported.