• by David Goetzl  @dgoetzl, January 10, 2008

The newly created companies from the impending split of the E.W. Scripps Co. plan to work together in retransmission consent negotiations for the 10 local stations Scripps operates.

Until now, Scripps has used the stations as leverage in negotiations with cable and satellite operators to grab higher carriage fees for its leading cable networks, HGTV and Food Network, and wider coverage for its three smaller channels (DIY, Fine Living and Great American Country).

But when the company breaks into two publicly traded entities, expected by July 1, the assets will be split--with the networks becoming the backbone of the new Scripps Networks Interactive and the stations joining newspapers in a new E.W. Scripps, focusing on local media.

At an investor conference this week, executives said the two companies will hammer out an agreement in which Scripps Networks pays E.W. Scripps for the rights to use the stations' retrans rights to bolster carriage fees and coverage for its portfolio.

Ken Lowe, the current CEO of Scripps and set to head Scripps Networks, said that will lead to "a real revenue stream" for the local-media company. Lowe added that the two companies will "continue to partner at certain levels," citing the potential for an agreement in which the stations will cross-promote the cable networks.

The 10 Scripps stations include the ABC affiliates in growing markets Phoenix and Tampa, and the NBC affiliate in Kansas City.