Movers and SHAKERS
E.W. Scripps Company (SSP)
Ion Media Acquisition; Positively Viewed
The E.W. Scripps Co. (www.scripps.com) serves audiences and businesses through a growing portfolio of television, print and digital media brands. After approval of its acquisition of two Granite Broadcasting stations later this year, Scripps will own 21 local television stations as well as daily newspapers in 13 markets across the United States. It also runs an expanding collection of local and national digital journalism and information businesses including digital video news service Newsy. Scripps also produces television programming, runs an award-winning investigative reporting newsroom in Washington, D.C., and serves as the longtime steward of one of the nation's largest, most successful and longest-running educational programs, Scripps National Spelling Bee. Founded in 1879, Scripps is focused on the stories of tomorrow.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Plans to acquire Ion Media for $2.65 billion. The acquisition will double the company's current size in both revenues and cash flow and position it as among the top broadcast groups. The purchase price at 8.2 times cash flow, or 5.9 times post synergies, appears attractive. The company agreed to sell 23 ION stations for regulatory fast track. The transaction is expected to close in Q1 2021.
Berkshire lends a hand. Berkshire Hathaway is helping to fund the deal with $600 million in preferred equity that carries an 8% dividend rate, redeemable after five years. In addition, Berkshire will receive warrants to purchase up to 23.1 million Class A shares, exercisable at $13. We believe that this move ...
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.