HUNT VALLEY, Md.—Amid widespread reports of mega-deals for broadcast stations and a growing sentiment that the Federal Communications Commission will eliminate station ownership caps, Sinclair, Inc. has announced that its Board of Directors has authorized a comprehensive strategic review for its broadcast businesses.
As part of the review, which will include possible acquisitions, strategic partnerships, and business combinations, the company also said that it will simultaneously evaluate separating its in its “Ventures” segment through a spin-off, split-off, or other transaction. The Ventures portfolio has diversified investments in real estate, private equity, and technology. A spin-off could raise capital that could be used in acquisitions.
“Scale wins in today’s broadcast industry, and we intend to lead that consolidation,” said Chris Ripley, president and CEO of Sinclair, Inc. “Our Broadcast business’s industry-leading performance positions us as the partner of choice for value creation. Simultaneously, we expect separating Ventures will crystallize significant value that the market has overlooked within our current structure, giving us even more flexibility to drive our broadcast strategy forward.”
Sinclair reported that the unanimous Board mandate “provides Sinclair with the flexibility to pursue transformational opportunities without predetermined limitations on transaction structures, enabling the Company to execute the most compelling strategy in today’s dynamic broadcast and media landscape.”
Sinclair has in the recent past indicated that it would pursue broadcast station acquisitions if the FCC relaxed ownership caps and has filed numerous briefs with the agency advocating changes in ownership rules.
In July, Sinclair announced that it has acquired the non-licensed assets of WDKA-TV (Paducah, Ky.) and KBSI-TV (Cape Girardeau, Mo.), with an option to acquire all the licensed assets of the stations.
