E.W. Scripps Puts Radio Stations Up for Sale.

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We’d call this a “shocker,” but there have been rumors in the industry recently that E.W. Scripps is not happy with the performances of its radio stations and is looking to sell. Today’s announcement seems to verify that. Saying that it is “creating a stronger, more streamlined and higher-performing company through comprehensive restructuring and cost reductions expected to yield more than $30 million in annual cost savings,” it is also planning to sell its 34 radio stations and has “retained Kalil & Co., Inc. to handle the process.” In the press release, Scripps president and CEO Adam Symson comments, “Today, Scripps is a dynamic leader in the media industry through its strong local TV station portfolio, its growing multicast network, its national news network, and its podcasting business. The enterprise-wide restructuring positions us well for continued growth while maintaining high-quality journalism as our central focus…Our restructuring analysis also led us to determine the time is right to find a new owner for our radio group that can provide the focus and resources the stations and their creative, devoted employees deserve.” Scripps got into the radio business as a result of the merger between Journal Communications and E.W. Scripps back in April of 2015. The two companies merged and spun off their newspaper assets as Journal Media Group with E.W. Scripps keeping Journal’s TV and radio stations. Adding more insight into Scripps’ restructuring plans, the press release says, “During third-quarter 2017, the company began its restructuring work with a $2.4 million restructuring charge. The company will take a restructuring charge of $2 million in the fourth quarter, estimates a $4 million charge in the first quarter and expects to take smaller quarterly charges into 2019. The annual cost savings are driven by reductions in head count and operating expenses over the next 12 to 18 months. These include centralization of services and technology; sharing of resources; elimination of redundant positions and services; and other expense reductions.”

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