Thursday, February 18, 2021
E.W. Scripps Company (SSP)
A Triton Haul
The E.W. Scripps Co. (www.scripps.com) serves audiences and businesses through a growing portfolio of television, print and digital media brands. After approval of its acquisition of two Granite Broadcasting stations later this year, Scripps will own 21 local television stations as well as daily newspapers in 13 markets across the United States. It also runs an expanding collection of local and national digital journalism and information businesses including digital video news service Newsy. Scripps also produces television programming, runs an award-winning investigative reporting newsroom in Washington, D.C., and serves as the longtime steward of one of the nation’s largest, most successful and longest-running educational programs, Scripps National Spelling Bee. Founded in 1879, Scripps is focused on the stories of tomorrow.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Sells Triton. E.W. Scripps agreed to sell Triton, its digital audio and podcast measurement business, to iHeartMedia for $230 million, above the top end of our $195 million estimate. The company purchased Triton in 2018 for $150 million, plus a small tuck in acquisition of Omny Media. The transaction is expected to close.
Transaction viewed favorably. Triton was an orphan business in the audio space following E.W. Scripps’ sale of Stitcher, its podcast business, to SiriusXM for $265 million. The transaction price is estimated to be 5 times 2021 revenues and 13 times estimated 2021 cash flow, substantially higher than the 3.7 times revenues and 9 times EBITDA the company paid for it in 2018 …
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.