Overview
- Sinclair filed an unsolicited offer to acquire E.W. Scripps for $7 per share, valuing the company at about $622 million with $2.72 in cash and $4.28 in stock.
- Scripps approved a one-year shareholder rights plan that becomes exercisable if any investor exceeds 10% ownership and lets existing holders buy shares at a 50% discount to dilute an unapproved bidder.
- Sinclair has accumulated up to roughly 9.9% of Scripps after earlier disclosing an 8.2% stake and says its proposal follows months of discussions.
- Any combination would create a group with more than 240 stations and face the FCC’s 39% national ownership cap, though Sinclair says the deal could close under current rules with limited divestitures.
- Control considerations loom large as Scripps founder descendants hold about 93% of common voting shares, and Sinclair has proposed an independent board, family representation, editorial standards with an ombudsman, and Scripps holders owning about 12.7% of the combined company.