Sinclair bids for rival TV broadcaster Scripps at $7 a share

Sinclair Inc., one of the largest US TV broadcasters, offered to acquire competitor E.W. Scripps Co. for $7 a share in cash and stock, marking another proposed consolidation of station owners.

The offer, announced in a regulatory filing Monday, consists of $2.72 a share in cash and $4.28 in stock. The price represents a 70% premium over Scripps’ Nov. 21 closing price of $4.12.

Shares of Scripps rose 8.5% to $4.47 at 1:16 p.m. in New York, giving the company a market value of about $397 million. Scripps said its board will review the proposal. Sinclair was down less than 1% to $15.57.

Broadcast TV has been losing viewers and advertisers to other media, pressuring station owners to combine to save costs and compete. The offer follows local TV broadcaster Nexstar Media Group Inc.’s August agreement to acquire another rival, Tegna Inc., in a $3.5 billion transaction that’s awaiting regulatory approval.

President Donald Trump on Sunday suggested television networks shouldn’t be allowed to expand, citing the potential growth of what he considers left-wing news outlets. Both Sinclair and Scripps operate stations affiliated with major TV networks.

That appeared to put him at odds with Brendan Carr, the chairman of the Federal Communications Commission, who has proposed steps to strengthen local station owners, including lifting a cap on their reach. Trump was responding to a call from the website Newsmax, which said letting station groups combine would be a “disaster for conservatives.”

Nexstar said Monday it continues to believe it’s on a path to completing its takeover of Tegna. The proposed buyer has more than 200 owned or partner stations, while Tegna has 64.

“We agree with President Trump that the status quo is no longer acceptable, nor should the government do anything to strengthen the stranglehold of legacy media and Big Tech on the marketplace of ideas,” Nexstar said in an emailed statement.

The company said modernizing FCC rules would empower local stations, not the networks.

Nexstar was one of two station owners, along with Sinclair, that pulled ABC’s Jimmy Kimmel Live! from the air for several days after its host made inflammatory remarks about the assassination of Republican activist Charlie Kirk.

Sinclair, which reported holding a 9.9% stake in Scripps, owns, operates or provides services to 178 TV stations in 81 markets. Scripps operates more than 60.