Sinclair Broadcasting, a major U.S. media company, is set to sell more than 30% of its owned or operated broadcast stations. They’ve enlisted Moelis as their investment bank to facilitate the potential sale of over 60 stations, including affiliates of major networks like Fox and NBC. The move comes amidst restructuring efforts and tension within the company’s leadership. Sinclair aims to capitalize on high-value assets, potentially unlocking hidden value and reducing debt.
Key Points:
- Sinclair Broadcasting plans to sell over 30% of its broadcast stations, totaling more than 60 outlets.
- Moelis has been hired as an investment bank to assist with the asset sales.
- The stations up for sale are affiliates of major networks like Fox, NBC, ABC, CBS, and the CW.
- Sinclair is willing to sell stations individually or as a package, potentially in top markets like Minneapolis and Portland.
- CEO Chris Ripley emphasizes the company’s openness to offloading assets to unlock value and reduce debt.
- The move follows Sinclair’s rebranding and restructuring last year into two operating units: Local Media and Ventures.
- Tension within the Smith family, major shareholders and board directors, may be influencing the decision to sell stations.
- The sale process precedes the 2024 election, historically a period of high political advertising revenue for broadcast TV companies.
- Sinclair’s revenue and advertising revenue showed slight increases in the first quarter of the year.
- Sinclair’s conservative editorial voice has drawn attention and controversy in the past, notably in 2018.
Source:
www.cnbc.com/2024/05/09/sinclair-explores-selling-30percent-of-broadcast-stations.html
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