Sinclair is exploring merger options for its broadcast business
Signage, Sinclair Broadcast Group Inc.’s Cockeysville, Maryland, is exhibited outside the center in the USA
Andrew Harrer | Bloomberg | Getty Images
SinclairOne of the largest broadcasting station owners in the USA is starting a strategic examination of the broadcasting business that may result in merger, The company said on Monday.
Companies and consultants have already organized deep debates with potential merger partners, according to people who could not speak publicly due to the sensitive nature of the negotiations. Nevertheless, it is too early to determine a valuation for a potential agreement.
At the same time, Sinclair also wants to close or divide the Ventures unit containing the Pay-TV network tennis channel and marketing technology Business Compulse. Sinclair in 2023 rearranged The company turns into two business units – local media or broadcast stations, as well as attempts to act as an investment tool.
The company has already received the Board approval to investigate its options. Although Sinclair has significant controversy with potential merger partners, there is no guarantee that an agreement or Spinoff will ultimately take place.
Sinclair shares increased by about 13% after the market process.
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Sinclair has 178 TV stations connected to major publishers such as ABC, NBC, CBS, FOX and CW in 78 markets.
Company reported Last week, the total revenue of the second quarter earnings fell by 5% to $ 784 million and total advertising revenue fell by 6%.
Publication TV station group owners, consumers have suffered in recent years as they continued to cut traditional payment TV bundles. Most stations make most of their money from the so -called re -transmission fees paid per subscriber by traditional TV distributors, Charter Communications And DirectV, for the right to carry stations.
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According to Factset, Sinclair has a market value of more than $ 4.3 billion with a company of approximately 875 million dollars. As Pay-TV subscribers decreased, the market value decreased significantly.
Last year, CNBC reported that Sinclair worked with Moelis and wanted to sell more than 30% of the broadcast TV footprint or more than 60 stations. CEO Chris Ripley said it was open to emptying some of the company’s job or discovering agreements in recent calls.
Other broadcasting station agreements may also be studied. Wall Street Journal last week reported HE Nexstar Media GroupThe biggest owner of the broadcast TV stations was in discussions to get TegnaIt has discovered itself in recent years.
