The E.W. Scripps Co. board of directors has unanimously rejected a takeover bid from Sinclair, the second-largest TV station owner group in the United States, the company announced Tuesday.
Scripps Rejects Sinclair’s Offer
Sinclair proposed an acquisition of Scripps on November 24, offering $7 per share in a combination of cash and stock for the shares of Scripps it does not currently own. This move occurred as Nexstar Media Group pursues a $6.2 billion deal to acquire Tegna, a move that would further solidify Nexstar’s position as the largest TV station owner in the U.S.
According to a statement released December 16, the Scripps board, after consulting with financial and legal advisors, determined that Sinclair’s offer did not serve the best interests of the company and its shareholders. Representatives for Sinclair have not yet responded to requests for comment.
Board Remains Open to Options
Kim Williams, chair of the Scripps board, stated the board is “committed to acting in the best interests of all Scripps shareholders as well as the company’s employees and the many communities and audiences it serves.” Williams added that while this proposal was rejected, the board will continue to evaluate opportunities to increase shareholder value and consider future acquisition proposals.
Currently, Sinclair operates or provides services to 185 TV stations across 85 markets, while Scripps operates more than 60 stations in over 40 markets.
Frequently Asked Questions
What did Sinclair offer for Scripps?
Sinclair offered $7 per share, in a mix of cash and stock, for the shares of Scripps it does not already own.
Why did Scripps reject the offer?
The Scripps board determined, after review with advisors, that Sinclair’s offer was not in the best interests of the company and its shareholders.
Could Sinclair make another offer?
The Scripps board stated it remains open to evaluating opportunities to enhance shareholder value and will consider any future acquisition proposals that are in the best interest of all shareholders, so a future offer from Sinclair is a possible next step.
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