Sinclair: E.W. Scripps Company still refusing to engage with takeover attempt
Adam Symson (left) and Chris Ripley
US television station group The E.W. Scripps Company is continuing to rebuff larger station group Sinclair’s attempt at a takeover.
Providing an update on its merger efforts, Sinclair said it has made repeated attempts to engage with Scripps, but the Ohio-based company is refusing to play ball.
In a statement, Sinclair said: “Over the last few weeks, Sinclair has continued to reinforce to Scripps its willingness to engage on a proposed Sinclair-Scripps combination. Scripps has refused the invitations to speak with its single largest shareholder and instead has stated its preference to execute its standalone plan.
“Our last proposal to Scripps represents a premium of more than 240% over Scripps’ unadjusted share price, while the cash portion alone represents a 32.7% premium over the unadjusted share price. We believe this proposal is attractive to Scripps’ shareholders and, at a minimum, is worthy of engagement.
“As we evaluate our options, the previously announced strategic review of Sinclair’s broadcast business and work related to the separation of Ventures will continue. Our board and management team are committed to unlocking the full potential of both businesses and driving continued value creation for all Sinclair shareholders.”
The full text of the recent letters between Sinclair and Scripps is available here.
It comes after Scripps vowed to stave off the “opportunistic actions” of Sinclair after it took an 8.2% stake in Scripps in December.
Maryland-headquartered Sinclair has previously said a merger could lead to US$300m in annual cost savings. Amid massive pressures facing TV station groups, many are exploring ways to merge or scale up in order to survive.
Sinclair, led by president and CEO Chris Ripley, has around 180 stations in 85 markets while Scripps, under president and CEO Adam Symson, has upwards of 60 in more than 40 markets across the US.
Scripps has previously said its board and management were “aligned on doing only what is in the best interest of all of the company’s shareholders as well as its employees and the many communities and audiences it serves across the United States.”
It added that it will continue to look at transactions or other moves that could boost the company’s value but closed its statement in December by taking a shot at the way Sinclair has gone about its business.
“The board will take all steps appropriate to protect the company and the company’s shareholders from the opportunistic actions of Sinclair or anyone else,” it said.
In addition to the Scripps-Sinclair talks, America’s largest television station owner, Nexstar Media Group, last year revealed plans to acquire fellow broadcasting group Tegna for around US$6.2bn.
The transaction, which requires regulatory approval from the Federal Communications Commission, would create a combined entity with 265 television stations in 44 states, including 132 of America’s 210 designated market areas and nine of the top 10 markets. Nexstar also said the Tegna deal would save around US$300m annually.
