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CINCINNATI - E.W. Scripps Company (NASDAQ:SSP) announced Wednesday that its board of directors has implemented a limited-duration shareholder rights plan following an unsolicited, non-binding acquisition proposal. The move comes amid remarkable stock momentum, with SSP shares surging over 128% in the past year and more than 103% in just the last six months, according to InvestingPro data.
The media company’s board adopted the "poison pill" measure to ensure shareholders receive full value in connection with any acquisition offer and to protect them from coercive tactics. The plan provides the board time to evaluate the current offer and explore other potential strategic alternatives.
The rights plan is effective immediately and will expire on November 26, 2026. Under the plan, Scripps will issue one right for each outstanding Class A common share and common voting share to shareholders of record as of December 8, 2025.
The rights become exercisable if a person or group acquires beneficial ownership of 10% or more of outstanding Class A common shares. In such a scenario, shareholders other than the acquiring party would be entitled to purchase additional Scripps Class A shares at a 50% discount to the market price.
"The board is committed to acting in the best interests of all Scripps shareholders," said Kim Williams, chair of Scripps’ board. "The rights plan safeguards shareholders’ ability to receive appropriate value for their investment and ensures that the board can assess the recently received proposal, and any strategic alternatives, in a thoughtful and orderly manner."
Scripps operates more than 60 local TV stations across 40+ markets and owns national media brands including Scripps News, Court TV, ION, and Bounce. The company is also the steward of the Scripps National Spelling Bee. Despite facing profitability challenges with a negative EPS of -$0.45 over the last twelve months, the company maintains solid financial flexibility with a current ratio of 1.61, meaning its liquid assets exceed short-term obligations.Want deeper insights into E.W. Scripps’ financial health and valuation? InvestingPro offers exclusive access to comprehensive Pro Research Reports for SSP and 1,400+ other US stocks, transforming complex Wall Street data into actionable intelligence for smarter investing decisions.
The company did not disclose details about the acquisition proposal in its press release statement.
In other recent news, E.W. Scripps Company reported its third-quarter 2025 earnings, revealing a larger-than-expected loss per share. The company posted an EPS of -$0.55, which was below the forecasted -$0.36, marking a significant surprise of 52.78%. Revenue also came in slightly below expectations at $525.8 million, compared to the forecast of $526.52 million. Despite these earnings misses, investor sentiment appeared positive, as indicated by a notable stock rise in after-hours trading. Additionally, Sinclair Inc. disclosed that it has acquired approximately 8.2% of E.W. Scripps’ outstanding class A non-voting shares. This follows reports that Sinclair has been in discussions to acquire the local TV broadcaster, although no agreement has been reached yet. These developments have sparked interest and speculation about the strategic directions both companies might pursue.
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