CINCINNATI—E.W. Scripps has issued a statement responding to news that Sinclair has acquired approximately 8.2% of the outstanding class A (non-voting) shares of the company.
Sinclair has also disclosed that it has been talking to Scripps about a possible deal for several months.
Scripps’ shares spiked on November 17 by more than 40% after Sinclair disclosed the stake in a filing with the Securities and Exchange Commission. They were trading at $4.34 on Tuesday at 11:15 a.m. ET, up from $3.06 on Friday, Nov. 14 at 4 p.m. ET.
In a statement, Scripps stressed that its “board of directors and management are focused on driving value for all of the company’s shareholders through the continued execution of its strategic plan. The board and management are 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. The company’s board has and will continue to evaluate any transactions and other alternatives that would enhance the value of the company and would be in the best interest of all company shareholders."
However, the company’s response also stressed that “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.”
Scripps operates a portfolio of more than 60 stations in 40-plus markets. It also owns Scripps News, Court TV, Ion, Bounce, Grit, Ion Mystery, Ion Plus and Laff.
Sinclair acquired its 8.2% stake for about $15.6 million. Those shares are however non-voting shares. The Scripps family controls about 93% of the voting shares according to Seeking Alpha.
