E.W. Scripps Considers Selling Bounce TV Network Amid Strong Interest

E.W. Scripps, one of the largest local TV broadcasters in the U.S., is exploring the potential sale of its over-the-air network Bounce TV, which targets African American audiences.

The company has hired a financial advisor to evaluate acquisition offers from interested parties, with the aim of fetching a price in the hundreds of millions for the network.

Scripps CEO Adam Symson confirmed that the company has received "significant interest from qualified potential suitors" for Bounce TV. The sale process could be completed by mid-year or the third quarter of 2024. Scripps officials have begun informing Bounce TV employees about the inbound interest.

Bounce TV, which debuted in 2011, broadcasts a combination of syndicated shows, movies, and original content geared towards African American viewers. Despite challenges faced by legacy media in recent years, the network has seen improved ratings and has doubled its revenue since Scripps acquired it as part of the $302 million takeover of Katz Networks in 2017.

The surge in inquiries from potential buyers may have been sparked by the earlier interest in BET Media Group, which Paramount Global attempted to sell last year. Many of the interested parties in the BET sale, including those with Black leadership, have since approached Scripps about acquiring Bounce TV.

Why this matters: The potential sale of Bounce TV presents an opportunity for Scripps to capitalize on the network's growth and profitability amid a challenging year for its stock due to declining pay-TV subscribers. The current environment of heightened interest in minority-controlled businesses and media assets has positioned Bounce TV as a prime target for acquisition.

Symson declined to discuss the names of potential bidders or a specific price for Bounce TV. However, people familiar with the matter told CNBC that a transaction could happen by mid-year or Q3 2024. Scripps is scheduled to report its Q1 2024 results on May 9, which may provide further insights into the potential sale of the network.

Key Takeaways

• E.W. Scripps exploring sale of Bounce TV, a Black-focused broadcast network.
• Scripps has hired a financial advisor to evaluate acquisition offers for Bounce TV.
• Bounce TV has seen improved ratings and doubled revenue since Scripps acquired it in 2017.
• Potential sale of Bounce TV presents an opportunity for Scripps to capitalize on the network's growth.
• Scripps expects the sale process to be completed by mid-year or Q3 2024.