EW Scripps Stock Sees Volatile Trading Session On Monday – What’s The Sinclair Angle?

On Monday, Sinclair formally presented a plan to buy out all remaining Scripps shares it doesn’t already own, for $7.00 per share.

• Sinclair had previously acquired a roughly 8.2% stake in E.W. Scripps. 
• The proposed price includes about $2.72 in cash and $4.28 in Sinclair stock, valuing the deal at $325 million.  

Sinclair, Inc. (SBGI) announced on Monday that it has submitted a takeover proposal for The E.W. Scripps Co. (SSP) Class A shares, according to its latest Schedule 13D filing with the SEC. 

The company had previously acquired a roughly 8.2% stake in E.W. Scripps. 

Following the announcement, SSP shares witnessed an initial knee-jerk reaction on the upside but soon pared all the gains to trade marginally in the red, at the time of writing.

The Bid Details

On Monday, Sinclair formally presented a plan to buy out all remaining Scripps shares it doesn’t already own, for $7.00 per share. That price includes about $2.72 in cash and $4.28 in Sinclair stock, valuing the deal at $325 million and on a 7× EV/EBITDA (ratio of enterprise value to earnings before interest, taxes, depreciation, and amortization) multiple.  

Sinclair’s stock traded over 1% higher on Monday mid-morning. On Stocktwits, retail sentiment around the stock shifted to ‘neutral’ from ‘bullish’ territory the previous day, while message volume changed to ‘high’ from ‘extremely high’ levels in 24 hours. 

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