Why did E.W. Scripps reject Sinclair's acquisition proposal?

Scripps' board unanimously rejected Sinclair's $622 million bid, stating it was not in the best interests of the company and its shareholders.

What was Sinclair's offer to E.W. Scripps?

Sinclair offered to acquire all remaining Scripps shares for $622 million, valuing each share at $7, including $4.28 in stock.

Did E.W. Scripps take any defensive measures against Sinclair's bid?

Yes, Scripps adopted a limited-duration shareholder rights plan, commonly known as a 'poison pill,' shortly after Sinclair's unsolicited bid was made public.

Home / Business and Economy / Scripps Rejects Sinclair's $622M Bid

Scripps Rejects Sinclair's $622M Bid

17 Dec

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Summary

Scripps board unanimously rejected Sinclair's $622 million acquisition proposal.
Sinclair's offer was $7 per share, including $4.28 in stock.
Scripps adopted a 'poison pill' defense shortly after the bid.

E.W. Scripps' board has officially turned down Sinclair's $622 million bid to acquire the company. The unanimous decision, announced on Tuesday, stated that Sinclair's offer was not in the best interests of Scripps or its shareholders. Sinclair, which currently owns 8.2% of Scripps, had proposed to purchase all remaining shares for $7 each, with a portion in stock.

This move comes shortly after Scripps implemented a defensive strategy, adopting a limited-duration shareholder rights plan, commonly known as a poison pill. This action was taken in late November, soon after Sinclair publicly disclosed its acquisition interest. While rejecting the current offer, Scripps indicated a willingness to consider future proposals that could boost shareholder value.

Sinclair had framed its bid as a strategic move to expand its broadcast television reach, citing the industry's need for greater scale to counter declining cable subscriptions and a weak advertising market. Scripps, with its diverse portfolio including local stations and national networks, is navigating a fragmented audience landscape by managing debt and investing in programming.