Business
Scripps creates national television networks business with acquisition of ION Media
Berkshire Hathaway to invest in Scripps; highly accretive, transformative transaction will double Scripps EBITDA CINCINNATI, Sept. 24, 2020 /PRNewswire/ --
About this update from E.w. Scripps Company (the)
[{"type":"text","content":"Berkshire Hathaway to invest in Scripps; highly accretive, transformative transaction will double Scripps EBITDA\n\n\nCINCINNATI, Sept. 24, 2020 /PRNewswire/ -- The E.W. Scripps Company (NASDAQ: SSP) will buy national broadcast network ION Media for $2.65 billion, combining the business with Scripps' Katz networks and Newsy to create a full-scale national television networks business. ION reaches more than 100 million homes through over-the-air and pay TV platforms and has consistently achieved annual revenue growth and EBITDA margins well beyond industry averages. In addition, this highly accretive acquisition will yield $500 million in synergies, most of which are contractually based, over the next six years.\n\n \n \n \n \n \n \n\n \nBerkshire Hathaway will make a $600 million preferred equity investment in Scripps to finance the transaction. Berkshire Hathaway also will receive a warrant to purchase up to 23.1 million Class A shares, at an exercise price of $13 per share. \nION Media, based in West Palm Beach, Florida, operates a national television network featuring popular crime and justice procedural programming. It is being purchased from an entity controlled by Black Diamond Capital Management. The network boasts the fifth-largest average primetime audience among all cable-carried networks. ION generates its revenue by selling advertising in the national marketplace. Combining ION with Katz and Newsy, which also primarily earn revenue from national advertising, will increase Scripps' reach into this durable ad market as it offers advertisers a larger platform on which to reach their audiences.\nTogether, ION, Katz and Newsy, Scripps' new national networks business, 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. \nToday, ION distributes its programming through Federal Communications Commission-licensed television stations it owns in 62 markets and 124 affiliated TV stations, reaching 96% of U.S. homes. ION elects government-mandated must-carry provisions for cable distribution rather than negotiating for retransmission revenue, thereby ensuring its programming is available on cable and satellite systems. \nThe combination of ION, Katz and Newsy is expected to produce run-rate synergies t...