Gold prices dip as December rate cut bets wane; economic data in focus
Investing.com -- E.W. Scripps (NASDAQ:SSP) stock surged 21% after Sinclair Inc. (NASDAQ:SBGI) revealed it has acquired approximately 8.2% of Scripps’ outstanding class A non-voting shares.
The disclosure follows reports from The Wall Street Journal that Sinclair has been vying to acquire the local TV broadcaster. According to people familiar with the matter, the two companies have held constructive talks about a potential deal in recent months but have not yet reached an agreement.
Sinclair reportedly purchased the stake to increase pressure on Scripps to finalize a deal. Industry sources indicate Sinclair believes greater scale at both national and local levels is increasingly necessary for broadcast TV companies to compete effectively against other media and technology firms.
In response to the stake disclosure, Scripps issued a statement indicating its board of directors and management remain "focused on driving value for all of the company’s shareholders through the continued execution of its strategic plan." The company added that its board would evaluate any transactions that could enhance company value while also taking "all steps appropriate to protect the company and the company’s shareholders from the opportunistic actions of Sinclair or anyone else."
The stake acquisition comes as traditional broadcasters face growing competition from streaming services and digital platforms, pushing many industry players to consider consolidation as a strategy for long-term survival.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.