Sinclair, one of the U.S.’s biggest local TV station groups, announced that its board has authorized a “comprehensive strategic review” for its broadcast business, including potential sales and acquisitions.
Sinclair owns, operates and/or provides services to 178 TV stations in 81 markets affiliated with all major broadcast networks. The Hunt Valley, Maryland-based company also owns Tennis Channel; multicast networks Charge, Comet, ROAR and The Nest; and NewsON, a national streaming aggregator of local news content.
The company announced Monday (Aug. 11) that it “will evaluate all value-enhancing opportunities, including acquisitions, strategic partnerships, and business combinations, with potential partners in the broadcast and the broader media and technology ecosystem.”
Shares of Sinclair shot up more than 20% in after-hours trading on the announcement, to more than $15/share.
In addition, Sinclair said it will simultaneously evaluate separating the Sinclair Ventures portfolio through a spin-off, split-off or other transaction. The Ventures group represents the company’s diversified investments in real estate, private equity and technology.
“Scale wins in today’s broadcast industry, and we intend to lead that consolidation,” said Chris Ripley, president and CEO of Sinclair, said in a statement. “Our Broadcast business’s industry-leading performance positions us as the partner of choice for value creation. Simultaneously, we expect separating Ventures will crystallize significant value that the market has overlooked within our current structure, giving us even more flexibility to drive our broadcast strategy forward.”
Sinclair claims that its broadcast business has “consistently outperformed industry peers,” with advertising revenues growing year-over-year in the most recent quarter “despite record political displacement.”
The company noted that “there is no assurance that the strategic review will result in any transaction or other strategic change, and Sinclair does not intend to disclose developments unless and until the Board approves a specific course of action or the Company otherwise determines that further disclosure is appropriate or required by law.”