Sinclair Buys Scripps Stock to Push for Deal

months regarding a potential combination of the two companies,” the filing said. In a news release issued after Sinclair’s filing, Scripps said its board “will take all steps appropriate to protect the company and the company’s shareholders from the opportunistic actions of Sinclair or anyone else” but also said it “will continue to evaluate any transactions and other alternatives that would enhance the value of the company.” Sinclair’s SEC filing says it bought 6,275,204 shares of E.W. Scripps. On Friday afternoon, Scripps share price was $3.06, suggesting Sinclair’s outlay was roughly $20 million. On Monday morning, the share price had risen to $3.65. A person familiar with the deal said Sinclair purchased the stock to put cash on the line and move negotiations with Scripps forward. In the SEC filing, Sinclair said combining with Scripps would provide “the ability to compete successfully for advertising share, critical programming, and distribution economics through enhanced local and national scale, coupled with disciplined execution of synergies.” The stock trade doesn’t require Sinclair to file with the FCC, but a full purchase of Scripps would put Sinclair over the current national ownership cap, and so require either waivers or the elimination of the cap. Nexstar’s proposed purchase of Tegna is already in a similar situation. Sinclair told the SEC that “upon reaching a definitive agreement, a transaction could be completed within nine to 12 months.”