Scripps, Journal Merging Broadcast Operations, Spinning off Newspapers
July 31, 2014
Untitled Document
The E.W. Scripps Company and Journal Communications have agreed to merge their broadcast operations and spin off and then merge their newspapers, creating two focused and separately traded public companies that offer long-term opportunities to create value for shareholders.

 The merged broadcast and digital media company, based in Cincinnati, will retain The E.W. Scripps Company name, and the Scripps family shareholders will continue to have voting control. The company will have approximately 4,000 employees across its television, radio and digital media operations and is expected to have annual revenue of more than $800 million.

The newspaper company will be called Journal Media Group and will combine Scripps’ daily newspapers, community publications and related digital products in 13 markets with Journal Communications’ Milwaukee Journal Sentinel, Wisconsin community publications and affiliated digital products. The company, with expected annual revenue of more than $500 million and approximately 3,600 employees, will be headquartered in Milwaukee.

The Scripps and Journal Communications boards of directors have approved the stock-for-stock transactions, which are subject to customary regulatory and shareholder approvals.

The deal is expected to close in 2015.

 “In one motion, we’re creating an industry-leading local television company and a financially flexible newspaper company with the capacity and vision to help lead the evolution of their respective industries,” said Rich Boehne, chairman, president and CEO of The E.W. Scripps Company, who will continue at the helm of Scripps. “Making the combinations even more appealing are the rich histories of these two organizations, both driven by a deep commitment to public service through enterprise journalism. For shareholders, this deal should unlock significant value as both companies gain efficiency, scale and more focus on the industry dynamics unique to these businesses.”

“This transaction will create two solid media businesses that will continue to serve their communities with a commitment to integrity and excellence that has been built over many years,” said Steven J. Smith, chairman and CEO of Journal Communications. “Journal’s radio and television stations will add depth and breadth to the Scripps TV group and additional expertise to its management team. The formation of the new Journal Media Group, headquartered in Milwaukee, will continue a tradition of exceptional print and digital journalism in 14 markets across the country. These companies will offer a combination of excellent local media assets and an incredible array of talent in our employees. We look to the future with great optimism and a continued sense of purpose in providing relevant, differentiated content to our local communities across the country.”

Journal Communications’ Class A and Class B shareholders will receive 0.5176 Scripps Class A Common shares and 0.1950 shares in Journal Media Group for each Journal Communications share. Scripps shareholders will receive 0.2500 shares in Journal Media Group for each Class A Common Share and each Common Voting Share they hold in Scripps.

Journal Communications shareholders will own approximately 31 percent of The E.W. Scripps Company’s total shares following the merger. Scripps shareholders will retain approximately 69 percent ownership. The Scripps family will retain its controlling interest in The E.W. Scripps Company through its ownership of Common Voting shares. Scripps shareholders will own 59 percent of the new newspaper company, Journal Media Group, and Journal Communications shareholders will own 41 percent. Journal Media Group will have one class of stock and no controlling shareholder.

Scripps shareholders of record just prior to the closing will receive a $60 million special dividend.

The transaction is expected to be tax-free to shareholders of both companies.

The companies project about $35 million in combined transaction synergies in the near term.




 
Breaking News
Stu Bergen Named CEO, International & Global Commercial Services For Warner Music Group
JoJo Turnbeaugh Named SVP of Programming for iHeartMedia Las Vegas
In Brief - February 5, 2016
February 4, 2016
John Strazza Joins RECORDS
Greater Media Promotes Buzz Knight to SVP of Program Development
MIWs Announce Results from 2015 Gender Analysis
February 3, 2016
Leslie Moonves Named Chairman Of CBS Corporation
FADER Label Annouces New Distribution Deal With Caroline
Jeff Hickcox Returns To Beasley SWFL As Promotions & Events Director
February 2, 2016
SiriusXM Reports Major Subscriber Growth, Record Revenue in 2015
BMG US Promotes Zach Katz To President Of Music Publishing
Bentley Named MD/Afternoon Drive Host at WEDG/Buffalo
SoundExchange Ends Record-Setting Year, $800 Million to Recording Artists and Record Labels
February 1, 2016
Alissa Pollack Named iHeartMedia EVP of Global Music Marketing
Entercom Atlanta Announces Jeff Dauler to Lead Mornings On STAR 94
John Shomby Named Director Of Programming for NASH Network
In Brief - February 1, 2016
January 29, 2016
eQB NOW
Alpha Media Promotes Two Portland Stars to Music Director
Justin Ragland To Head SummitMedia Birmingham Marketing & Promotions
January 28, 2016
WDRV/Chicago Names Rob Cressman Program Director
Matt O'Grady Named Chief Executive Officer Of Nielsen Catalina Solutions
Frank Arigo Named Senior Vice President Of Marketing For Columbia Records
January 27, 2016
Music News
Earth, Wind & Fire's Maurice White Dead At 74
The Entertainment World Remember Maurice White
Quick Hits: Rihanna, Lady Gaga, Future, The Lumineers, Stone Temple Pilots
Justin Bieber, Pitbull and More Added to Grammy Lineup
Quick Hits: Miley Cyrus, Iggy Azalea, Taylor Swift, Future
Lady Gaga to Honor Bowie at Grammys, Sing National Anthem at Super Bowl
Quick Hits: Juno Awards, Metallica, Guns N' Roses, Grammys, Joe Bunch
Quick Hits: Kanye West, Five Finger Death Punch & Shinedown, Big Boi, Disclosure, The Roots Picnic, Moonstone Festival
RIAA Announces New Certification Methods
Quick Hits: Adele, Rihanna, Red Hot Chili Peppers, Fleetwood Mac Fest, Jefferson Airplane, Smashing Pumpkins, Halestorm, Santigold
Jefferson Airplane Co-Founder Paul Kantner Passes Away
Quick Hits: Rihanna, Zayn, Kanye West, Coldplay, Shawn Mendes
TIDAL Surprises Fans with New Rihanna Album
Coldplay To Tour U.S. Stadiums
Quick Hits: Rick Ross, J. Cole, Rock & Roll Hall of Fame, Halsey, Deftones, Sting, Lionel Richie Tribute Concert
FMQB NOW

Mike “OD” O’Donnell, OM
Entercom
Scranton Wilkes-Barre, PA

Advertisement:
Search FMQB.com
Advertisements:
FMQB Member Login
Email:
Pass:

Save
Not a member yet?
Sign up Now!
Sign Up for Breaking News!
Enter FMQB E-Tracking!