Wednesday, March 20, 2019

E.W. Scripps (SSP)

Moves up the food chain.

The E.W. Scripps Co. 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

Michael Kupinski, DOR, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to full report for price target, fundamental analysis and rating. 

• Adds a nice mix
  of stations. The company announced plans to acquire 8 stations for a
  combined purchase price of $580 million, strengthening some of its current
  markets and enhancing its reach to near 30% of US TV households. We view the
  move favorably. Transaction expected to close late this year. 
• Multiple appears
  a little rich, but not worrisome. the company indicated that it will pay 8.1 times (net
  of tax benefits) on blended 2017/2018 EBITDA of $56 million. We believe that
  the multiple would be a little higher if based on 2018/2019 estimates. Notab…
  

  
  
  
  
  

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*Analyst
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