Just one week after reports emerged that local broadcast owner Sinclair had built up over an 8% stake in E.W. Scripps, one of its smaller competitors, in an effort to prepare a takeover bid for the company, Sinclair has officially made an unsolicited offer.
According to a report by Eric Fisher in Front Office Sports, Sinclair has submitted a bid of $7 per share for the whole of Scripps. In the week since The Wall Street Journal first reported of Sinclair’s growing stake in Scripps, Sinclair has grown its share of the company from 8.2% to 9.9%.
The news of Sinclair’s formal offer comes one day after President Trump surprisingly spoke out against FCC commissioner Brendan Carr about lifting the cap on broadcast station ownership that prevents any one company from reaching more than 39% of the country’s households. Carr has long supported lifting the cap, which would prevent a transaction like that of Sinclair’s proposed purchase of Scripps. Sinclair owns 178 stations across 80 markets nationwide. Scripps owns over 60 stations in 40 markets.
Trump’s comments also jeopardize the proposed merger between Nexstar and Tegna, two other major local broadcast groups that would require the 39% cap be lifted in order for the transaction to receive federal approval.
A Sinclair-Scripps deal would impact a number of live sports properties. Scripps, with its Ion broadcast network, has curated a sizeable portfolio of sports content, including weekly WNBA doubleheaders and NWSL matches. Its affiliates are also the primary local rights holders for four NHL teams: the Las Vegas Golden Knights, Florida Panthers, Tampa Bay Lightning, and Utah Mammoth.
Sinclair, for its part, wholly owns the Tennis Channel, an asset that it has recently considered selling. The company also owns 50% of the Chicago-area Marquee Sports Network. Prior to a lengthy Chapter 11 bankruptcy proceeding that concluded in January, Sinclair owned the regional sports network group that currently uses the FanDuel Sports Network branding. Per last week’s Journal report, Sinclair sees Scripps’ sports portfolio as one reason to acquire the company.
In a statement released on Monday, Scripps said its board will review Sinclair’s proposal and determine the best course of action for the company and its shareholders.
About Drew Lerner
Drew Lerner is a staff writer for Awful Announcing and an aspiring cable subscriber. He previously covered sports media for Sports Media Watch. Future beat writer for the Oasis reunion tour.