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E.W. Scripps Co. has rejected the acquisition bid from rival local television station owner Sinclair Inc., sending another wave of uncertainty through the sports media business.
Three weeks after Sinclair tendered its bid for Scripps, the Ohio-based owner of 60 stations and Ion, and two weeks after Scripps created a poison pill to thwart it, the company’s board unanimously and formally turned down the proposal.
“After careful consideration, Scripps’ board determined that Sinclair’s unsolicited acquisition proposal is not in the best interests of Scripps and its shareholders,” said Scripps board chair Kim Williams late Tuesday. “The board nonetheless remains open to evaluating opportunities to enhance shareholder value and will continue to consider any course of action, including any acquisition proposal, that is in the best interest of shareholders.”
Sinclair, the owner of Tennis Channel and 178 local stations, had argued that a union of the two companies was vital to achieve greater scale in a rapidly changing media industry. In pursuit of that, Sinclair had already amassed a 9.9% equity stake in Scripps and had proposed creating a combined company with a market capitalization of $2.9 billion.
The next steps for either company are unclear. While Scripps signaled openness to takeover offers, it still has its shareholder rights plan—acting as the poison pill against an unapproved acquisition—in place for another 50 weeks.
Sports programming is a core element in any of these considerations, particularly on the Scripps side. The Ion network owned by Scripps reached a multiyear extension of its rights deal with the WNBA this past June.
The Scripps sports portfolio, meanwhile, also includes rights to the NWSL, the Big Sky Conference, and local rights to a handful of pro teams, including the two-time defending Stanley Cup champion Panthers, the Golden Knights, the Mammoth, the Lightning, and defending WNBA champion Aces. With these pacts, Scripps has been at the heart of a broader resurgence for sports in over-the-air television.
