Broadcast company Sinclair has acquired more than 8% of E.W. Scripps’ Class A common stock, according to a regulatory filing on Monday. The purchase is described as being made “in contemplation” of a possible broader bid to acquire Scripps.
Sinclair stated it has held months of discussions with Scripps about a potential merger and argued that increasing scale is “essential to address secular headwinds and compete effectively” in the U.S. media sector. The company cited increased competition and recent consolidation trends in the industry as factors behind its move.
E.W. Scripps confirmed Sinclair’s new stake and said its board will “continue to evaluate any transactions” that are in shareholders’ best interests. However, Scripps also noted it would act to protect itself from any “opportunistic actions of Sinclair or anyone else.”
Following the news, shares of Scripps rose by nearly 40%, closing at $4.28, while Sinclair’s stock closed up 4.91% at $16.87.
The possible acquisition comes amid a period of consolidation in the U.S. local television market. In August, Nexstar Media Group announced an agreement to buy Tegna for $6.2 billion.
Supporters of these mergers argue that they help broadcasters compete with larger media and technology companies for audiences, but critics have raised concerns about the risk of homogenized news content across stations owned by large corporations.
An example occurred in September when both Nexstar and Sinclair preempted Jimmy Kimmel’s late night show on their ABC-affiliated stations after comments made by Kimmel regarding conservative activist Charlie Kirk’s death; this blackout lasted over a week even after ABC lifted its suspension.
Sinclair Broadcast Group is based in Hunt Valley, Maryland, and owns or operates 185 TV stations across 85 markets affiliated with all major broadcast networks, as well as the Tennis Channel. The company is known for broadcasts reflecting a conservative perspective.
E.W. Scripps Co., headquartered in Cincinnati, Ohio, runs more than 60 local stations in over 40 markets and owns national outlets such as Scripps News and Court TV along with entertainment brands like ION.
