• Get involved.
    We want your input!
    Apply for Membership and join the conversations about everything related to broadcasting.

    After we receive your registration, a moderator will review it. After your registration is approved, you will be permitted to post.
    If you use a disposable or false email address, your registration will be rejected.

    After your membership is approved, please take a minute to tell us a little bit about yourself.
    https://www.radiodiscussions.com/forums/introduce-yourself.1088/

    Thanks in advance and have fun!
    RadioDiscussions Administrators

Scripps Elects To Exit Radio Business

TheBigA said:
I agree. And if what they say is true, and the stations are "underperforming," it's even less attractive.

From RadioInk: "She also says it’s a tough call because the stations, inherited from Journal Communications back in 2015, have been underperforming “for quite some time.”
Click to expand...

Scripps has looked at radio as an afterthought after getting the Journal stations. The company last ran radio stations in the early-‘90s, under management that’s been gone for years. The TV people are running the show, and they have no clue about radio.

TheBigA said:
I don't. This group is organized around four and five station clusters. Each cluster is very self-contained. Easier to sell them as clusters than as one-offs. Plus EMF already owns stations in a lot of these markets.
Click to expand...

Agreed. It’s hard to tell which groups will want what markets though. I can see some going to capable local owners, but I could also see someone like Alpha selling off their smallest stations (like the ones they inherited from Digity in rural Minnesota) to help fund the purchase of Scripps’ Tucson cluster.
 
EricStein said:
Agreed. It’s hard to tell which groups will want what markets though. I can see some going to capable local owners, but I could also see someone like Alpha selling off their smallest stations (like the ones they inherited from Digity in rural Minnesota) to help fund the purchase of Scripps’ Tucson cluster.
Click to expand...

Alpha has reportedly been shopping those small Digity markets since at least that deal closed if not earlier. The problem is nobody, or at least nobody with the capital, seems to want any of them. Pretty sure the only ones of those to find a buyer were the Salina/Manhattan, KS stations, which went to Rocking M and Seaton.
 
Kent said:
Alpha has reportedly been shopping those small Digity markets since at least that deal closed if not earlier. The problem is nobody, or at least nobody with the capital, seems to want any of them.
Click to expand...

Very common problem. Partly why so many Aloha Trust stations are still there, as well as Cumulus Trust stations. In the old days, some local rich guy would buy them. Not any more. So they become boat anchors for these big national companies who'd love nothing more than to just shut them down. I'm reading that Cumulus has already done that to a few. We might see more of that in the bankruptcy.
 
Kent said:
I hope it doesn’t happen, but Lew Dickey is sitting on a lot of dry powder...
Click to expand...

Cumulus first HQ was in Milwaukee, maybe this time he can own stations in Milwaukee?

Im guessing Saga and Entercom would like to bulk up in Milwaukee. This is going to be different from CBS, Scripps is run by TV people that has no clue about radio, they will want to get rid radio fast. Surprising the radio group is underperforming, it was very successful just a couple years ago under Journal.
 
My candidates for Scripps stations Beasley Radio, Saga, Townsquare and Summit.


Entercom? I have doubts on them given how current management is still making changes to the former CBS Radio stations. Also this rumor of Entercom getting the Scripps radio division is the Equivalent of Nexstar making claims of getting the Tegna stations right after Nexstar took over Media General in 2017. That rumor is going nowhere.
 
I doubt the Scripps cluster fits with Entercom's plans due to them being in mostly random medium markets.
 
Rocking M just picked up 3 in Wichita, and they can easily fit one or two more in there (plus the AM) while Ecom takes KFDI. Doubt i<3 will take one other unless there's something at play for swapping.
MKE seems like a given for Ecom as well, and Omaha is right up Saga or Ecom's alley.
 
RadioPatrol said:
My candidates for Scripps stations Beasley Radio, Saga, Townsquare and Summit.


Entercom? I have doubts on them given how current management is still making changes to the former CBS Radio stations. Also this rumor of Entercom getting the Scripps radio division is the Equivalent of Nexstar making claims of getting the Tegna stations right after Nexstar took over Media General in 2017. That rumor is going nowhere.
Click to expand...

Beasley took on a lot of debt with the GM purchase, and they stick to the East and Vegas, so they're a no go. Tsq. isn't expanding, and Summit has done virtually nothing. Saga is about the only outlier here other than Ecom.
 
Someone brought up Midwest Communications. Yes they own 3 in Knoxville, so that limits them there. But they might like to have stations in Oklahoma, Missouri, and Nebraska. Not to mention Milwaukee. But I think lots of companies want those two Milwaukee stations.
 
https://www.fiercecable.com/video/e-w-scripps-cutting-jobs-as-part-cost-saving-measures

E.W. Scripps is also in talks for cutting jobs in the next 12-18 months besides selling the radio division.

E.W. Scripps will begin cutting jobs over the next 12 to 18 months as part of a restructuring process the company hopes will amount to more than $30 million in annual savings.

The company described the job cuts, as well as the cuts to operating expenses, as the centralization of services and technology, sharing of resources, elimination of redundant positions and services and other expense reductions. An E.W. Scripps spokesperson declined to provide details regarding how many jobs would be eliminated and from which departments.

E.W. Scripps also plans to sell its 34 radio stations. A spokesperson said the company doesn’t yet have a timeline for when the sale will occur but that the company has begun the process of finding a buyer.

The company also said it plans on “configuring a more durable TV station portfolio during this period of changing local market regulations.”

“This plan is consistent with our goal to create both short-term and long-term value by improving margins and cash flow in our local media business and supporting the growth of our national businesses,” said E.W. Scripps CEO Adam Symson in a statement. “Our restructuring analysis also led us to determine the time is right to find a new owner for our radio group that can provide the focus and resources the stations and their creative, devoted employees deserve.”

The company anticipates it will continue incurring restructuring costs in the near future. After the $2.4 million restructuring charge in the third quarter of 2017, E.W. Scripps will absorb a $2 million charge in the fourth quarter, an estimated $4 million charge in the first quarter and expects to take smaller quarterly charges into 2019.

In November, E.W. Scripps posted a third-quarter net loss of $26.7 million, down from $12.5 million in net income one year ago, due to a $35.7 million impairment charge associated with Cracked and some restructuring costs.
Click to expand...
 
bobjim45 said:
Im guessing Saga and Entercom would like to bulk up in Milwaukee. This is going to be different from CBS, Scripps is run by TV people that has no clue about radio, they will want to get rid radio fast. Surprising the radio group is underperforming, it was very successful just a couple years ago under Journal.
Click to expand...

While Entercom would be able to fit the Scripps stations in their cluster, Saga is already maxed out of FM stations unless if they're looking to spin off one of their Class A signals.
 
It'll take some time to divest these, unless Scripps intends to get rid of them no matter the price, which I doubt. Apparently, it was determined that simply spinning them off into an independent company wasn't feasible.
 
miketheradioguy said:
While we're still waiting to hear where Entercom will get the rest of the money from the CBS Radio merger divestitures, I have some thoughts if Entercom were to acquire some of the radio stations from Scripps.
Click to expand...

There are more important things to pay attention to. The merger's two months old now, its old news.

Also,
"I’ll focus on the stations in my area once the merger closes."-miketheradioguy, dated 10-27-2017 03:59 PM

...what happened there?
 
While Entercom would be able to fit the Scripps stations in their cluster, Saga is already maxed out of FM stations unless if they're looking to spin off one of their Class A signals.
Click to expand...

Of course they'd "look" to spin off 106.9 MHz in the Milwaukee market if that's the only standing in the way between Saga being able to acquire WTMJ and WKTI. It's a no brainer!!! Energy 106.9's signal is a disaster and the station makes little to no money (it probably loses money).

Multiple Scripps-owned clusters would be great fits for either Saga or Midwest Communications. The market sizes in play fit both companies almost perfectly. Geographically speaking, the fit is a little better for Midwest.

Townsquare's equity sponsorship is looking to sell the company; it is unlikely that they would want to make additional acquisitions.

Beasley and Entercom wouldn't be interested in anything outside of the top 50 (probably top 30) markets. Those of you who think Entercom actually gives two rips about Chattanooga are mistaken; that transaction with iHeart was simply an accommodation so that Entercom's merger with CBS Radio would be permitted by the FCC to proceed.
 
MarkW said:
Of course they'd "look" to spin off 106.9 MHz in the Milwaukee market if that's the only standing in the way between Saga being able to acquire WTMJ and WKTI. It's a no brainer!!! Energy 106.9's signal is a disaster and the station makes little to no money (it probably loses money).

Multiple Scripps-owned clusters would be great fits for either Saga or Midwest Communications. The market sizes in play fit both companies almost perfectly. Geographically speaking, the fit is a little better for Midwest.

Townsquare's equity sponsorship is looking to sell the company; it is unlikely that they would want to make additional acquisitions.

Beasley and Entercom wouldn't be interested in anything outside of the top 50 (probably top 30) markets. Those of you who think Entercom actually gives two rips about Chattanooga are mistaken; that transaction with iHeart was simply an accommodation so that Entercom's merger with CBS Radio would be permitted by the FCC to proceed.
Click to expand...

We don't even know who will actually buy Scripps' radio stations yet. But as you pointed out, WNRG-FM would be the easy divestiture if Saga does end up with WKTI and WTMJ, although it's possible that Entercom may want the Milwaukee stations instead. The only other market Entercom would be interested in is Tucson, as it would make a great pairing with their Phoenix cluster they acquired from the CBS Radio deal.
 
You must log in or register to reply here.
Status
This thread has been closed due to inactivity. You can create a new thread to discuss this topic.
Back
Top Bottom