E.W. Scripps, a large local TV broadcaster in the U.S., is considering selling its over-the-air network Bounce TV, which is geared towards African Americans. Scripps has hired a financial advisor to evaluate interest from potential buyers, many of whom have approached the company following the unsuccessful sale of BET Media Group last year. The company hopes to attract a price tag in the hundreds of millions for Bounce TV, as it trades for about $3.70 per share with a market valuation of roughly $315 million.
Scripps CEO Adam Symson confirmed that the company has received a significant amount of interest from qualified potential suitors for Bounce TV, with discussions picking up over the past year. The sale process could be completed around mid-year or the third quarter, but Symson declined to disclose the names of the bidders or potential pricing details. The value of media assets can increase if sold to Black owners due to dedicated spending from advertising agencies and big brands on minority-controlled businesses.
Bounce TV, launched in 2011, is a free over-the-air network that caters to African American audiences by broadcasting a mix of syndicated shows, movies, and original content. The network’s viewership has improved in recent years despite challenges faced by legacy media. In the first quarter, Bounce TV saw a 14% increase in linear viewership and a 9% increase in connected TVs. Approximately 70% of Bounce TV’s audience comes from over-the-air viewers, while the remaining 30% is through pay TV and streaming platforms.
Although Symson did not provide specific financial details for Bounce TV, he mentioned that the network’s revenue has doubled since Scripps acquired it as part of the takeover of Katz Networks for $302 million in 2017. Scripps currently operates a portfolio of over 60 stations in more than 40 U.S. markets, making it one of the largest local TV broadcasters in the country. Bounce TV’s lineup includes the dramedy “Johnson” and the new comedy series “Mind Your Business,” which is set to premiere on June 1.
The rise in interest for Bounce TV comes at a time when concerns over pay-TV cancellations have impacted Scripps’ stock performance, which is down more than 50% this year. The potential sale of Bounce TV could help alleviate some of these concerns and generate significant revenue for the company. Scripps officials have begun informing Bounce TV employees about the inbound interest, signaling that the sale process is progressing. The network’s focus on delivering content for African American audiences has contributed to its success and increased viewership in recent years, positioning it as a valuable asset for potential buyers.
