E.W. Scripps, a prominent local TV broadcaster in the United States, is currently exploring the possibility of selling Bounce TV, its free over-the-air network catering to African American viewers. The decision to evaluate inbound interest in acquiring Bounce TV has been driven by the growing interest expressed by potential buyers, many of whom have approached Scripps with genuine interest in owning the network.
Financial Implications of the Sale
If E.W. Scripps decides to pursue a deal for Bounce TV, the company is hoping to attract a price tag in the hundreds of millions. This move comes at a time when Scripps’ stock has seen a significant decline of more than 50% this year, primarily due to concerns over pay-TV cancellations that have impacted the audience for broadcast networks. The potential sale of Bounce TV could provide a much-needed financial boost to the company and improve its market valuation.
Strategic Considerations for E.W. Scripps
CEO Adam Symson has remained tight-lipped about the names of potential bidders and the expected price for Bounce TV. However, he has acknowledged the increased interest from qualified suitors over the past year. The earlier attempt to sell the Black entertainment company BET Media Group has paved the way for a renewed interest in networks like Bounce TV, especially among Black-owned businesses and advertisers looking to support minority-controlled media assets.
Since its launch in 2011, Bounce TV has gained popularity among African American audiences by offering a diverse range of content, including syndicated shows, movies, and original programming. The network’s original series like “Johnson” have resonated well with viewers, and the upcoming comedy series, “Mind Your Business,” is set to further bolster Bounce TV’s appeal. Despite challenges faced by legacy media, Bounce TV has managed to increase its viewership, with a notable 14% rise on linear and a 9% increase on connected TVs in the first quarter.
Financial Performance and Revenue Growth
Although specific financial details about Bounce TV have not been disclosed, it has been revealed that the network’s revenue has doubled since E.W. Scripps acquired it as part of the takeover of Katz Networks for $302 million in 2017. This indicates a positive trend in the financial performance of Bounce TV under Scripps’ ownership. The network’s audience is predominantly over the air, with around 70% of viewers accessing content through this mode, while the remaining 30% comes from pay TV and streaming services.
The potential sale of Bounce TV represents a strategic move for E.W. Scripps to capitalize on the network’s popularity and growth potential. With increasing interest from potential buyers and a steady rise in viewership, Bounce TV could fetch a substantial price, benefiting both Scripps and the future owner of the network. As discussions progress, the decision to sell Bounce TV could significantly impact the media landscape and open up new opportunities for minority-controlled businesses in the broadcasting industry.