Sinclair is pursuing a deal with Scripps to create more television station synergies

Television station owner Sinclair Inc. has bought an equity stake in fellow publisher EW Scripps, signaling its intention to become a behemoth in a shrinking field.

Sinclair disclosed its interest in Scripps, which has stations in Fresno, Bakersfield, Buffalo, N.Y., and Billings, Mont., in a Securities and Exchange Commission filing Monday. Baltimore-based Sinclair, known for its conservative political leanings, said it acquired about 8% of Scripps by buying its publicly traded shares.

Sinclair explained that he had “constructive discussions” with it [Scripps] For several months about the possible combination of the two companies.

No deal has been made.

Cincinnati-based Scripps, in a statement suggesting it was not interested in a deal with Sinclair, said the Scripps board and management were instead “focused on driving value for all of the company’s stakeholders through the continued execution of its strategic plan.”

“The board and management are only doing what is in the best interest of all of the company’s stakeholders, as well as its employees and the many communities and audiences it serves in the United States,” Scripps said.

Sinclair appears to be putting pressure on Scripps through stock purchases and public disclosures. Scripps stock was up nearly 40% in Monday’s premarket to $4.28. The company is valued at around $363 million.

Sinclair shares also took a hit, gaining 5% to close at $16.87. The company’s market value is $1.2 billion.

TV station owners hope President Trump and his appointments to the Federal Communications Commission will lift government-imposed caps on broadcast ownership. Currently, stations are prohibited from owning stores that reach more than 39% of the US population.

Sinclair currently owns or operates 185 television stations in 85 markets, according to its website.

FCC Chairman Brendan Carr has expressed interest in conducting major deregulation. The anticipated pressure has created a flurry of deals among broadcasters, who have seen their advertisers and audiences shrink as more consumers get their news through social media.

Sinclair, in his filing, pointed to the changing political winds in Washington.

“Recent industry consolidation and competition are intensifying [Sinclair’s] “See that more scale is necessary in the broadcast television industry to address the secular revolution and compete effectively with the large-scale big tech and big media players as well as the big broadcast groups,” Sinclair wrote.

In September, Sinclair urged the Walt Disney Company to punish late-night host Jimmy Kimmel after the host made comments about the alleged gunman who was later charged and arrested in the killing of conservative activist Charlie Kirk in Utah. Sinclair owns several ABC affiliate stations and “Jimmy Kimmel Live!” left it For more than a week.

Sinclair requested that Kimmel make a “meaningful personal contribution” to Kirk’s political organization, Turning Point USA.

But Sinclair’s campaign fell apart after Disney’s brass, Camille, returned to his late-night perch – without Sinclair having requested it.

Critics have pointed to the alleged disadvantages of empowering television stations, including fewer on-the-ground workers and journalists reporting on the communities where the stations are based.

Sinclair’s filing contradicts such arguments, writing that “larger scale would also strengthen broadcasters’ ability to continue their vital public service role in local news production.”

The Scripps consolidation could generate “more than $300 million in estimated annual synergies,” the filing said.

“The proposed combination would be structured to require no external financing as the combined company would retain each company’s respective debt and preferred capital structures,” Sinclair wrote in the filing. “The transaction will avoid significant refinancing costs while meaningfully reducing leverage by realizing synergies and reducing future refinancing risk.”

In its 2024 annual report, Sinclair said its dozen stations produced more than 2,400 hours of live news coverage per week across its station footprint, in addition to our various digital, social and audio platforms.

Sinclair said in Monday’s filing that it is committed to “constructive engagement with [Scripps] Towards a definitive transaction agreement, “and Sinclair wants to strengthen its publisher partners “within nine to 12 months.”

Scripps took a defensive stance in response to Sinclair’s aggression, saying in a statement that “the board will take all necessary steps to protect the company and the company’s shareholders from opportunistic actions by Sinclair or anyone else.”

Elsewhere in local TV business, Texas-based Nextar, the nation’s largest TV broadcaster, is seeking government approval for its $6 billion deal to buy rival broadcaster Tegna.