Wednesday, April 24, 2024
The E.W. Scripps Company (NASDAQ: SSP) is a diversified media company focused on creating a better-informed world. As one of the nation’s largest local TV broadcasters, Scripps serves communities with quality, objective local journalism and operates a portfolio of 61 stations in 41 markets. The Scripps Networks reach nearly every American through the national news outlets Court TV and Newsy and popular entertainment brands ION, Bounce, Defy TV, Grit, ION Mystery, Laff and TrueReal. Scripps is the nation’s largest holder of broadcast spectrum. Scripps runs an award-winning investigative reporting newsroom in Washington, D.C., and is the longtime steward of the Scripps National Spelling Bee. Founded in 1878, Scripps has held for decades to the motto, “Give light and the people will find their own way.”
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Potential Bounce TV sale. The company appears to be currently shopping its Over The Air (OTA) network Bounce TV, a network geared towards African American audiences. The sale of the Network, which would be viewed favorably, could take some of the pressure off of the company’s high debt leverage. Notably, CEO Adam Symson indicated that a deal could take place in the second or third quarter of this year.
Strategic interest? There are a number of networks and programming companies that are focused on the attractive African American audience and could be strategic buyers for Bounce. We estimate that Bounce has shown attractive growth over the past several years, doubling in revenue since it purchased the network in 2017 to over $150 million in revenue in 2023. We estimate a potential selling price could be between $165 million to $225 million, or 1.1 to 1.5 times revenues.
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