Sinclair stock soars after launching strategic review for broadcast business

Investing.com -- Sinclair, Inc. (NASDAQ:SBGI) stock surged 20% after the company announced a comprehensive strategic review for its broadcast business, signaling potential industry consolidation moves.

The media company’s board unanimously authorized the review to evaluate value-enhancing opportunities including acquisitions, strategic partnerships, and business combinations with potential partners in the broadcast, media, and technology sectors.

Simultaneously, Sinclair will explore separating its Ventures portfolio through a spin-off, split-off, or other transaction. This dual-track approach aims to unlock value across both business segments, which have different growth profiles and value drivers.

"Scale wins in today’s broadcast industry, and we intend to lead that consolidation," said Chris Ripley, President & CEO of Sinclair. "Our Broadcast business’s industry-leading performance positions us as the partner of choice for value creation. Simultaneously, we expect separating Ventures will crystallize significant value that the market has overlooked within our current structure, giving us even more flexibility to drive our broadcast strategy forward."

The company highlighted its broadcast business has consistently outperformed industry peers, with advertising revenues growing YoY in the most recent quarter despite record political displacement. Meanwhile, its Ventures portfolio includes diversified investments in real estate, private equity, and technology.

Sinclair noted there is no assurance the strategic review will result in any transaction or other strategic change, and it doesn’t intend to disclose developments unless the board approves a specific course of action.

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