E.W. Scripps Shares Jump 40% After Sinclair Reveals Stake, Pushes for Merger

Shares of E.W. Scripps surged 40% on Monday after Sinclair Broadcast Group disclosed it had taken an 8% stake in the company as part of an effort to push for a potential merger. Sinclair’s own shares gained nearly 5% following the announcement.

Sinclair said in an SEC filing that it recently acquired the stake for about $15.6 million and has been in “constructive” discussions about a possible deal. The company said a merger could be completed within nine to twelve months, and estimated up to $300 million in synergies based on current trading multiples.

Scripps, one of the smaller U.S. broadcast station owners, has been reviewing its business and holding talks with potential partners as industry pressures mount. In a statement, the company said its board would “take all steps appropriate to protect the company and the company’s shareholders from the opportunistic actions of Sinclair or anyone else.”

Scripps added that its leadership remains focused on executing its strategic plan and evaluating any transactions that could enhance long-term value for shareholders, employees, and the communities it serves.

The move comes as broadcast TV station groups struggle with the ongoing shift away from traditional pay-TV bundles toward streaming. Many rely heavily on retransmission fees from cable and satellite distributors, revenue that has come under pressure as subscriber numbers decline.

The industry has been consolidating under expectations of deregulation during the Trump administration. In August, Nexstar Media Group, the largest station owner, agreed to buy Tegna for $3.54 billion.

Sinclair is also exploring strategic changes of its own, including a possible spin-off or separation of its ventures unit, which includes The Tennis Channel and marketing technology business Compulse, recently rebranded as Digital Remedy.