E.W. Scripps announced Tuesday it will split into two separate publicly traded companies, separating its cable TV and internet properties from slower growing sources of revenues. The new Scripps Networks Interactive will include HGTV, Shopzilla, the Food Network, and Fine Living Network. The other company will consist of Scripps' 17 newspapers, 10 broadcast television stations, and a character licensing and syndication business. "This way the Internet and cable-TV properties won't be dragged down by the legacy media properties, the TV and the newspapers," said Barry Lucas, an analyst at Gabelli. CEO Kenneth W. Lowe said the split would allow the new entities to operate "with a sharpened strategic focus that would foster continued growth, solid operating performance and a clear vision on how best to build on the specific strengths." Like most splits of this kind, investors were happy with the news; shares of Scripps were up 8.6% Tuesday to $45.93.
Commentary: E. W. Scripps Company: Seeking Success Online • Scripps' Shopzilla Discovers Link Building
Stocks to watch: SSP. Competitors: GCI, HTV.ETFs: PBS
Earnings call transcript: E.W. Scripps Q2 2007
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