Sinclair Broadcast Group has acquired an 8.2% stake in rival EW Scripps, according to a regulatory filing, as the US broadcaster explores a possible takeover of the smaller local TV operator.
In a filing on Monday, Sinclair said it purchased the Class A common stock “in contemplation” of a wider bid, having held months of talks with Scripps over a “potential combination”. The company argued that increased scale is “essential to address secular headwinds and compete effectively” in the face of growing competition and industry consolidation.
Scripps acknowledged the stake, stating that its board would “continue to evaluate any transactions” in the interest of shareholders, while also vowing to protect itself from “opportunistic actions of Sinclair or anyone else”. Shares in Scripps jumped nearly 40% to close at $4.28, while Sinclair’s stock rose 4.91% to $16.87.
The move comes amid wider consolidation in US local television, including Nexstar Media Group’s $6.2bn deal to buy rival Tegna in August. Proponents argue such acquisitions help broadcasters compete with larger media and technology companies, but critics warn of homogenisation, with more local stations becoming “duplicators” of syndicated reporting and subject to corporate owners’ editorial decisions.
In September, both Nexstar and Sinclair preempted Jimmy Kimmel’s late-night show across their ABC-affiliated stations over remarks the comedian made concerning conservative activist Charlie Kirk. The blackout affected dozens of local markets for more than a week, even after ABC’s parent company Disney lifted its own suspension.
Sinclair, based in Hunt Valley, Maryland, operates 185 TV stations in 85 markets and owns the Tennis Channel, while Scripps, headquartered in Cincinnati, Ohio, runs over 60 local stations in more than 40 markets and holds national outlets including Scripps News, Court TV and ION. Any merger would require regulatory approval, though Federal Communications Commission chairman Brendan Carr has indicated willingness to change rules limiting station ownership.
