Sinclair Broadcast Group's Hostile Bid to Acquire E.W. Scripps for $622 Million

In a move that could significantly reshape the U.S. broadcasting landscape, Sinclair Broadcast Group has made an unsolicited bid to acquire E.W. Scripps Company for $7 per share, valuing the deal at approximately $622 million. This offer comprises $2.72 in cash and $4.28 in Sinclair common stock, representing a 200% premium over Scripps' 30-day average share price as of November 6, 2025. [Source: tvtechnology.com]

Sinclair, which already holds about 9.9% of Scripps' Class A common stock, has requested a response from Scripps by December 5, 2025. In response, Scripps has adopted a shareholder rights plan, commonly known as a "poison pill," to prevent hostile takeovers by diluting the shares of any investor who acquires more than 10% of the company. This defensive measure aims to give Scripps' board time to evaluate Sinclair's offer and consider other strategic alternatives. [Source: reuters.com]

The proposed merger would create a significant local media entity with over 240 stations, potentially challenging the Federal Communications Commission’s 39% national media ownership cap. The industry is currently facing pressure from declining viewership and ad revenues, making consolidation appealing. Scripps’ shares have surged nearly 43% since Sinclair’s stake disclosure. The Scripps family retains dominant voting control through about 93% of the voting shares. Sinclair proposed an independent board for the combined company, including representation from both the Sinclair and Scripps families. Scripps’ board emphasized the rights plan as a measure to ensure shareholders receive fair value and the board can assess the bid properly. [Source: reuters.com]

As of December 1, 2025, Sinclair's stock (SBGI) is trading at $15.48, down 1.78% from the previous close, while Scripps' stock (SSP) is trading at $4.30, up 1.66%.

The outcome of this acquisition attempt remains uncertain, with Scripps' board evaluating the offer and the potential regulatory challenges ahead.