Scripps to buy ION Media
October 3, 2020E.W. Scripps announced a buyout of broadcast network ION Media on September 24. The purchase price is $2.65 billion and join is with Katz and Newsy for a full-scale national network business. ION reaches more than 100 million homes over-the-air and pay TV platforms including in Pittsburgh on WINP-TV (16).
Berkshire Hathaway will invest $600 million in preferred equity for Scripps to finance the purchase. They will also buy up to 23.1 million Class A shares at $13/share.
ION is being purchased from Black Diamond Capital Management where it has the fifth-largest average primetime audience among cable networks. Combined with Katz an Newsy, Scripps’ reach into the durable ad market will increase and advertisers will have a larger platform to reach audiences.
Scripps will divest of 23 ION tv stations to comply with FCC ownership restrictions which will likely not include WINP as Scripps does not have any other nearby properties. The company has already made an agreement with an undisclosed buyer for the 23 stations who will maintain the ION affiliation.
The transaction is expected to close in the first quarter of 2021.
(Yahoo!)
Hey Eric, this would be a return to Pittsburgh for Scripps. Remember they used to own the Pittsburgh Press back in the day.
Do you think Scripps (should they keep the station in town) would launch a local newscast? We haven’t had a fourth news station in town since WPGH shut down.
Ehhh… not sure if they would try. They wouldn’t have a network source like an NBC or CBS.