E.W. Scripps, one of the major local TV broadcasters in the U.S., has recruited a financial advisor to assess interest in acquiring Bounce TV, an over-the-air network aimed at African Americans, according to CEO Adam Symson.
The selling process follows Paramount Global's unsuccessful attempt to sell Black entertainment business BET Media Group last year. Interested parties from that prospective acquisition, many of whom had Black leadership, have subsequently approached Scripps about purchasing Bounce TV, Symson revealed in an exclusive CNBC interview. If Scripps pursues a transaction, it expects to pay hundreds of millions of dollars, according to people familiar with the situation.
E.W. Scripps trades at about $3.70 per share at a A market worth of around $315 million. The stock is down more than 50% this year due to fears about pay-TV cancellations, which reduce the audience for broadcast networks.
Symson declined to comment on the bidders' identities or the proposed price for Bounce TV. According to those acquainted with the situation, an agreement might be reached around mid-year or in the third quarter.
"The number of inbounds and conversations that we have had with interested and qualified potential suitors has picked up significantly over the last year," Symson said in a statement. "The earlier BET process, which was never consummated, may have opened up people's eyes to the power of Bounce."
certain advertising agencies and huge companies allocate certain expenditure expressly for minority-controlled firms, Symson said. This may improve the value. of media assets if they are sold by corporations to Black individuals. He also mentioned that a site like Bounce TV might act as a landing page for a collection of Black producers.
According to a source familiar with the situation, Scripps management began informing Bounce TV staff about the inbound interest on Tuesday.
Bounce TV, which began in 2011, is a free-to-air network that airs a mix of syndicated programming, movies, and original material. All programming is directed toward African American viewers. Bounce TV's "Johnson," a dramedy developed by Deji LaRay, is beginning its fourth season. The network is also debuting a new comedy series, "Mind Your Business," which starts on June 1.Bounce TV's ratings have improved in recent years, despite legacy media's struggles. According to Symson, Bounce TV viewing increased by 14% on linear TVs and 9% on linked TVs in Q1. Approximately 70% of Bounce TV's audience is over the air. The remaining 30% comes from pay TV and streaming, he added.
While Symson declined to provide data regarding Bounce TV's economics, he did say that the network's income has increased since it was acquired as part of Katz Networks' $302 million buyout in 2017.
Scripps owns and runs more than 60 stations in over 40 areas across the United States.
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