Business
Scripps completes acquisition of ION Media from Black Diamond, creating new national networks business
Transaction provides about 60% accretion in free cash flow per share CINCINNATI and GREENWICH, Conn., Jan. 7, 2021 /PRNewswire/ -- The E.W. Scripps Company
About this update from E.w. Scripps Company (the)
[{"type":"text","content":"Transaction provides about 60% accretion in free cash flow per share\n\n\nCINCINNATI and GREENWICH, Conn., Jan. 7, 2021 /PRNewswire/ -- The E.W. Scripps Company (NASDAQ: SSP) and Black Diamond Capital Management LLC have closed Scripps' acquisition of ION Media Networks Inc.\n\n \n \n \n \n \n \n\n \nScripps is combining ION with the Katz networks and Newsy to create a full-scale national television networks business. Together, the national networks will reach nearly every American through free over-the-air broadcast, cable/satellite, over-the-top and digital distribution, with multiple advertising-supported programming streams.\n\"This is a historic and transformational moment for Scripps that strengthens our leadership position in broadcasting and accelerates our multiplatform strategy to serve diverse audiences everywhere they seek to be informed and entertained,\" said Scripps President and CEO Adam Symson. \"Bringing our networks together with ION will create a formidable national television business focused on connecting with audiences and advertisers in the rapidly evolving media landscape while fueling our company's future growth.\"\nWith this sale, Black Diamond completes its 11-year turnaround of ION. \n\"We are extremely proud of ION's transformation from $33 million of EBITDA in 2009 to $300 million plus during our ownership,\" said Christopher W. Parker, Senior Managing Director of Black Diamond and ION Director. \"This sale brings to a conclusion a successful investment for all of ION's shareholders. We thank ION's management team and wish Scripps well with its acquisition.\" \nION reaches more than 100 million homes through over-the-air and pay TV platforms and has consistently achieved EBITDA margins well beyond industry averages. The highly accretive acquisition will yield $500 million in synergies, most of which are contractually based, over the next six years, reaching a $120 million run rate.\nScripps also has completed the sale of 23 ION affiliated TV stations to INYO Broadcast Holdings, a Salt Lake City–based operator of stations. \nAs the nation's fourth-largest local TV broadcaster, Scripps serves communities with quality, objective local journalism and operates a portfolio of 60 stations in 41 markets. With this transaction, Scripps also reaches nearly every American through its national networks: news o...