E.W. Scripps Stock Surges on Sinclair Takeover Push
Sinclair Broadcast Group has reportedly acquired a significant stake in its rival, signaling a major consolidation move in the local TV broadcast industry.
Shares of E.W. Scripps (SSP) jumped in trading after Sinclair Broadcast Group (SBGI) reportedly acquired a substantial stake in the company and is actively pursuing a takeover, a move that could unite two of the largest players in the U.S. local television market.
The development, first reported by The Wall Street Journal, sent Scripps’ Class A shares soaring, reflecting investor appetite for an acquisition premium in an industry ripe for consolidation. Sinclair, one of the nation's biggest broadcasters, is said to have built a position of around 8% in its smaller rival, signaling a serious intent to negotiate a deal.
This potential tie-up arrives as the local broadcasting industry confronts significant secular headwinds, including persistent cord-cutting and fierce competition from streaming giants. In response, major station owners are seeking greater scale to bolster their negotiating power with cable and satellite distributors for retransmission fees and to capture a larger slice of advertising revenue, particularly from the record-breaking political spending seen in the 2024 election cycle.
A merger would combine Scripps’ portfolio of 61 stations in 41 markets with Sinclair’s sprawling footprint of 185 stations across 86 markets. Such a combination would create a broadcasting behemoth with significant leverage in content and distribution negotiations, though it would likely face intense regulatory scrutiny from the Federal Communications Commission (FCC) over market ownership caps.
However, Sinclair’s path to an acquisition is far from straightforward. The primary obstacle is the formidable control wielded by the founding Scripps family. E.W. Scripps operates under a dual-class share structure designed to maintain family influence over the company’s strategic direction. According to company filings, the family controls the majority of the Common Voting Shares, giving them the power to elect the overwhelming majority of the board of directors.
This structure makes a hostile takeover virtually impossible, forcing Sinclair to seek a friendly, negotiated agreement with a board it cannot unilaterally replace. Any proposal would need to win the approval of the Scripps family, whose interests have historically been focused on the long-term stewardship of the journalism-focused enterprise founded in 1878.
The push for consolidation comes as traditional revenue streams face uncertainty. While broadcasters have benefited from a surge in political advertising, analysts project that revenue from retransmission consent fees—the money pay-TV providers pay to carry local stations—is set to flatten in the coming years as more consumers abandon traditional cable bundles for streaming alternatives.
For Sinclair, acquiring Scripps would offer access to key assets, including the Scripps News network and Ion Media, which provides a national broadcast footprint. A larger portfolio of stations would also enhance its ability to compete for national advertising dollars that are increasingly flowing toward connected TV (CTV) and other digital platforms.
E.W. Scripps has a market capitalization of approximately $277 million, while Sinclair is valued at over $1.1 billion. Both companies have seen their valuations challenged as investors weigh the long-term viability of the traditional broadcast model against the growth of digital media. Sinclair's own stock saw a slight dip in trading following the news, reflecting potential investor concern over the cost and complexity of a potential acquisition.
As of the latest market data, E.W. Scripps has total revenue of around $2.3 billion, while Sinclair's revenue stands at approximately $3.3 billion. The strategic logic hinges on cost synergies and enhanced revenue opportunities that a combined entity could unlock.
The next move rests with Sinclair to formalize its intentions and with the Scripps family and its board to evaluate whether a sale is in the best interest of all shareholders. For now, the market is betting that Sinclair's overture will, at the very least, put Scripps in play, potentially attracting other suitors and forcing a new chapter for one of America’s oldest media companies.