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Sinclair Board Authorizes Strategic Review of Broadcast Business

Sinclair aims to harness scale advantages by exploring sales, acquisitions or a spin-off of its diversified Ventures holdings.

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COCKEYSVILLE, MARYLAND - JULY 17: The sign for Sinclair Broadcast Group, Inc. is seen near their headquarters on July 17, 2024 in Cockeysville, Maryland. Sinclair is the second-largest television station operator in the U.S., with 193 stations across the country in over 100 markets. (Photo by Kevin Dietsch/Getty Images)

Overview

  • On Aug. 11, Sinclair’s board approved a comprehensive review of its 178-station broadcast unit to assess value-enhancing options including sales, acquisitions and partnerships.
  • The company will simultaneously evaluate separating its Sinclair Ventures portfolio through a spin-off, split-off or similar transaction to crystallize undervalued real estate, private equity and technology assets.
  • CEO Chris Ripley highlighted that Sinclair’s broadcast arm outperformed peers with year-over-year ad revenue growth despite record political ad displacement and said the company intends to lead industry consolidation.
  • Shares jumped more than 20% in after-hours trading to above $15 per share as investors responded positively to the strategic exploration.
  • Sinclair emphasized there is no guarantee the review will result in any transaction and pledged to limit disclosures until the board approves specific actions or disclosure is required by law.