E.W Scripps: An Upcoming Merger Makes This Company Attractive To Special Situations Investors
- The E.W Scripps Company recently announced an agreement to merge with Journal Communications via a stock swap.
- In a relatively unusual transaction, the two companies will combine their broadcasting assets and distribute their publishing assets to shareholders in the form of a newly spun out company.
- After E.W Scripps sheds its publishing assets, the company will enjoy an improved growth profile as it is able to focus on higher margin broadcasting operations with less regulatory encumbrance.
- Shareholders of both companies will receive a debt free publishing company, the Journal Media Group, focusing on local newspapers. Additionally, E.W Scripps shareholders will also receive a special cash dividend.