E.w. Scripps Company (the) · NASDAQ:SSP
E.w. Scripps Company (the) — Merger or Acquisition (September 2020)
15 slides from E.w. Scripps Company (the)'s merger presentation, Sep 25, 2020
Slide 1: The E.W. Scripps Company Acquisition of ION Media
The E.W. Scripps Company Acquisition of ION Media A transformative transaction that creates a national networks business Sept. 24, 2020
Slide 2: Scripps Creates New National Networks Business
Scripps Creates New National Networks Business • The E.W. Scripps Company is acquiring ION Media to create a new national television networks business to take advantage of growth trends in the evolving media landscape. • ION, Katz and Newsy will reach nearly every American through free over-the-air
Slide 3: Transaction Highlights
Transaction Highlights • Purchase price: $2.65 billion in cash • $500 million of synergies in first six years, driven largely by our ownership of the Katz networks; reaching run rate of about $120 million a year • Implied transaction multiple: 8.2x last 12 months EBITDA as of June 30, 2020; 5.9x wit
Slide 4: ION Media Investment Highlights
ION Media Investment Highlights • 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. • Today, it owns 71 broadcast television stations in 62 DMAs and reaches nearly 10
Slide 5: Katz, ION and Newsy Together Generate About $500 Million In Synergies Over Six Years
Katz, ION and Newsy Together Generate About $500 Million In Synergies Over Six Years • Katz and Newsy uniquely position Scripps to capitalize on the ION Media opportunity. • By migrating the Katz networks to ION’s digital subchannels, Scripps will realize significant expense reductions by eliminatin
Slide 6: ION Media Today Reaches Over Million U.S. Homes
ION Media Today Reaches Over 100 Million U.S. Homes The only independent American Owns and operates the largest U.S. Largest holder of U.S. TV spectrum national broadcast television network broadcast television station group 71 owned-and-operated stations in 62 Nationwide distribution to 100+ millio
Slide 7: ION Media's strong business was built on its national audience reach
ION Media’s strong business was built on the back of its national audience reach through owned and affiliated stations. 7
Slide 8: ION Capitalizes On The Growing Over-The-Air Viewing Trends Among TV Consumers
ION Capitalizes On The Growing Over-The-Air Viewing Trends Among TV Consumers A Nielsen survey in 2018 projected OTA households would double by 2022, to 21 million. 67% A Parks & Associates report from 2019 showed 67% growth in over-the-air viewing, to 25% of U.S. TV households, from 2018-Q3 2019. P
Slide 9: As The TV Marketplace Fragments, Free Over-The-Air Television Is Even More Compelling
As The TV Marketplace Fragments, Free Over-The-Air Television Is Even More Compelling To Consumers OVER-THE-AIR IS A KEY COMPONENT TO THE NEW CONSUMER BUNDLE 2015 Pay-TV 2018 The New Subscriber Cord Cutter Bundle Cord Cutter Bundle $$$$ $$ $$$$ FREE 13
Slide 10: ION's Revenue, Profit Come From National Advertising
ION’s Revenue, Profit Come From National Advertising, Which Is A Durable And Massive Marketplace • Following this year’s pandemic-driven slowdown, national TV advertising is expected to rebound in 2021. • Despite audience fragmentation, the TV advertising marketplace is still the most efficient way
Slide 11: Driven By Popular Syndicated Programming, ION Is Engaging Viewers, Growing Ratings
Driven By Popular Syndicated Programming, ION Is Engaging Viewers, Growing Ratings BROADCAST NETWORKS AVERAGE PRIMETIME AUDIENCES 2019/2020 broadcast season 5.2 million 4.7 million 4.3 million 3.4 million 1.1 million 826,000 ION consistently ranks in the top 10 for network and cable audiences and ye
Slide 12: ION Accelerates Scripps' Near-Term And Long-Term Strategies
ION Accelerates Scripps’ Near-Term And Long-Term Strategies • Immediately accretive to Scripps’ revenue growth, margins and cash flow generation • Diversifies Scripps’ revenue and cash flow • Attractive economics: sustained revenue growth and high margins • Exposure to a growing television platform,
Slide 13: Planned Sale of Stations Already In Place To Obtain Regulatory Approval
Planned Sale of Stations Already In Place To Obtain Regulatory Approval • In order to comply with the national cap and in-market station ownership restrictions, Scripps plans to sell 23 ION stations. • Scripps has signed an agreement to divest all 23 stations simultaneously with the merger agreement
Slide 14: Financing Includes Traditional Debt, Preferred Equity Investment from Berkshire Hathaway
Financing Includes Traditional Debt, Preferred Equity Investment from Berkshire Hathaway Size Considerations $300 Cash million • Cash on hand at closing from the divestitures of Stitcher, WPIX, ION stations and normal cash from operations Traditional $1.85 Debt billion • Secured and unsecured debt •
Slide 15: aly
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