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.”
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.
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.
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.
I hope it doesn’t happen, but Lew Dickey is sitting on a lot of dry powder...
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.
...Seaton.
What about Dick, which owned what is now the Cumulus cluster in Knoxville?
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.
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.
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.
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.
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.