Sinclair Eyes Scripps for Broadcast Merger – Merger Arbitrage Mondays

The E.W. Scripps Company (SSP): $4.25

Market Cap: $376.71M

Offer Size: $693M

In the holiday-shortened week, merger activity slowed down significantly. However, there was one interesting situation in the broadcasting industry that could be opportunistic for arbitrageurs: a potential deal between U.S. broadcaster Sinclair (SBGI) and its smaller rival E.W. Scripps.

Over a week ago, Sinclair disclosed it had built a roughly 8% stake in Scripps with the hope of acquiring the local TV broadcaster. The companies had been in talks for months about a deal to combine the two. But Scripps did not appear as eager in these discussions, stating it will evaluate any proposals that enhance value and “take all appropriate steps” to protect the company and its investors from “opportunistic actions.”

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