E.W. Scripps, one of the largest local TV broadcasters in the U.S., is considering the sale of Bounce TV, its over-the-air network focused on African American audiences. The company has hired a financial advisor to evaluate potential interest from buyers. Paramount Global explored the sale of BET Media Group last year but ultimately decided against it. However, several parties involved in that potential deal, many of whom have Black leadership, have approached Scripps with interest in acquiring Bounce TV.
If Scripps decides to sell, it hopes to attract a price tag in the hundreds of millions. Currently, E.W. Scripps trades for around $3.70 per share, with a market valuation of approximately $315 million. The stock has seen a decline of more than 50% this year due to concerns over pay-TV cancellations impacting the audience for broadcast networks.
Scripps CEO Adam Symson declined to reveal the names of potential bidders or the potential price for Bounce TV. However, people familiar with the process suggest that a deal could happen around mid-year or the third quarter. Symson mentioned that the number of interested and qualified potential suitors has significantly increased over the last year. The earlier BET process, although it didn’t materialize, may have raised awareness about the value and potential of Bounce TV.
There are various factors driving interest in Bounce TV as a potential acquisition. Some advertising agencies and big brands allocate funds specifically for minority-controlled businesses, which can increase the value of media assets sold to Black owners. Additionally, Bounce TV could serve as an ideal platform for a catalog of Black creators.
Bounce TV, launched in 2011, is a free over-the-air network that broadcasts a mix of syndicated shows, movies, and original content tailored to African American audiences. The network has seen improved ratings in recent years despite challenges faced by legacy media. In the first quarter, Bounce TV’s viewership increased by 14% on linear platforms and 9% on connected TVs. Approximately 70% of its audience accesses the network over the air, while the remaining 30% comes from pay TV and streaming services.
While Symson didn’t provide specific financial details about Bounce TV, he mentioned that the company has doubled the network’s revenue since acquiring it as part of the takeover of Katz Networks for $302 million in 2017. E.W. Scripps operates over 60 stations in more than 40 U.S. markets.
The potential sale of Bounce TV highlights the growing interest in media assets focused on minority audiences and owned by minority-controlled businesses. As more attention is given to diversity and representation, networks like Bounce TV have the potential to attract significant investment and provide a platform for underrepresented voices in the industry.
