Sinclair Pursues Scripps Deal After Buying 8% Stake: Report

• According to The Wall Street Journal, Scripps has a market value of approximately $270 million and operates over 60 local TV stations across more than 40 markets.
• The report noted that Sinclair bought up the stake to add pressure on Scripps to strike a deal. 
• In August, Sinclair announced that its board authorized a comprehensive strategic review for its Broadcast business. 

Sinclair (SBGI) has reportedly built about 8% stake in E.W. Scripps (SSP) and is actively pursuing a potential acquisition of the local television broadcaster.

According to a Wall Street Journal report, citing people familiar with the matter, both companies have held constructive talks in recent months but have yet to agree to a deal. The report added that later on Monday, Sinclair’s stake will be revealed in a regulatory filing.

The report noted that Sinclair bought up the stake to add pressure on Scripps to strike a deal. According to The Wall Street Journal, Scripps has a market value of approximately $270 million and operates over 60 local TV stations across more than 40 markets. Shares of Scripps have jumped nearly 20% in premarket trading.

Sinclair Eyeing Deals

In August, Sinclair announced that its board authorized a comprehensive strategic review for its Broadcast business. The company had then noted that it would evaluate all value-enhancing opportunities, including acquisitions, strategic partnerships, and business combinations, with potential partners in the broadcast and the broader media and technology ecosystem.

Sinclair had also announced that the company was simultaneously evaluating the separation of Ventures through a spin-off, split-off, or other transaction.

What Is Retail Thinking?

Retail sentiment on Sinclair remained unchanged in the ‘neutral’ territory, with message volumes at ‘normal’ levels, according to data from Stocktwits. Retail sentiment on Scripps was in the ‘neutral’ territory compared to ‘extremely bearish’ territory a day ago.

Shares of Sinclair have gained nearly 1% in the last 12 months, and Scripps have jumped about 77%. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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