• by Wayne Friedman , 7 hours ago

Amid high-lvel discussions of TV station consolidation and proposed deals, Sinclair Inc., the second-largest U.S. TV station owner, made a formal but unsolicited bid to buy mid-sized TV station owner E.W. Scripps.

The offer is for $7.00 a Scripps share -- $2.72 in cash and $4.28 in stock and expected synergies.

Scripps stock was up sharply at Monday’s close -- 7.5% to $4.43. Sinclair Inc. stock rose 1.4% to $15.87.

Scripps viewed this as a hostile takeover bid. "The board will take all steps appropriate to protect the company and the company’s shareholders from the opportunistic actions of Sinclair or anyone else," according to a company release.

Previously, Sinclair acquired around 10% of Scripps stock.

Curry Baker, media analyst of Guggenheim Securities, says: “In our view, there is no path forward for Sinclair unless the Scripps family signs off on the proposed transaction.”

Separately, in response to a Federal Communications Commission report that it may lift the ownership of TV stations -- set at 39% of U.S. households -- Trump now says he would not be happy” if that happens, because it would allow major TV networks to get stronger command and greater influence over consumers -- especially those news networks owned by Walt Disney and Comcast Corp.

Nexstar Media Group, the biggest U.S. TV station owner,  issued a press release in response to the Trump statement.

Nexstar recently announced a $6.2 billion plan to buy Tegna, another significant TV station group -- a deal that would need the 39% cap loosened.

“We agree with President Trump that the status quo is no longer acceptable, nor should the government do anything to strengthen the stranglehold of legacy media and Big Tech on the marketplace of ideas.”

Nexstar added: “We continue to believe that the landscape is ripe for regulatory reform and that we are on the path to completing our transaction.”