E.W. Scripps exploring sale of Black-culture broadcast network Bounce TV

E.W.
Scripps,
one
of
the
largest
local
TV
broadcasters
in
the
U.S.,
has
hired
a
financial
advisor
to
evaluate
inbound
interest
in
acquiring
Bounce
TV,
its
over-the-air
network
geared
toward
African
Americans,
according
to
Scripps
CEO
Adam
Symson.

The
sale
process
comes
after


Paramount
Global
shopped
around
Black
entertainment
company
BET
Media
Group
last
year,
but
ultimately
decided
not
to
sell.
Interested
parties
from
that
potential
deal,
many
of
them
with
Black
leadership,
have
since
approached
Scripps
with
interest
in
owning
Bounce
TV,
Symson
said
in
an
exclusive
CNBC
interview.
If
Scripps
pursues
a
deal,
it
hopes
to
attract
a
price
tag
in
the
hundreds
of
millions,
according
to
people
familiar
with
the
matter.

E.W.
Scripps
trades
for
about
$3.70
per
share
at
a
market
valuation
of
roughly
$315
million.
The
stock
is
down
more
than
50%
this
year
amid
concerns
over
pay-TV
cancellations
that
diminish
the
audience
for
broadcast
networks.

Symson
declined
to
comment
on
the
names
of
the
bidders
or
the
potential
price
for
Bounce
TV.
People
familiar
with
the
process
said
a
deal
could
happen
around
mid-year
or
the
third
quarter.

“The
number
of
inbounds
and
conversations
that
we
have
had
with
interested
and
qualified
potential
suitors
has
picked
up
significantly
over
the
last
year,”
Symson
said. “The
earlier
BET
process,
which
was
never
consummated,
may
have
opened
up
people’s
eyes
to
the
power
of
Bounce.”

Some
advertising
agencies
and
big
brands
earmark
some
spending
specifically
for
minority-controlled
businesses,
Symson
said,
which
can
increase
the
value
of
media
assets
if
they’re
sold
from
conglomerates
to
Black
owners.
He
added
a
platform
such
as
Bounce
TV
could
also
serve
as
a
landing
spot
for
a
catalog
of
Black
creators.

Scripps
officials
began
telling
Bounce
TV
employees
about
the
inbound
interest
on
Tuesday,
according
to
a
person
familiar
with
the
communications.

Bounce
TV,
which
debuted
in
2011,
is
a
free
over-the-air
network
that
broadcasts
a
combination
of
syndicated
shows,
movies
and
original
content.
All
content
is
geared
to
African
American
audiences.
Bounce
TV’s “Johnson,”
a
dramedy
created
by
Deji
LaRay,
is
entering
its
fourth
season.
The
network
is
also
launching
a

new
comedy
series, “Mind
Your
Business,”
that
premieres
June
1.

Ratings
for
Bounce
TV
have
improved
in
recent
years,
even
as
legacy
media
has
struggled.
In
the
first
quarter,
Bounce
TV
viewership
was
up
14%
on
linear
and
9%
on
connected
TVs,
Symson
said.
About
70%
of
Bounce
TV’s
audience
is
over
the
air.
The
other
30%
is
derived
through
pay
TV
and
streaming,
he
said.

While
Symson
declined
to
give
specifics
about
Bounce
TV’s
finances,
he
said
the
company
has
doubled
the
network’s
revenue
since
acquiring
it
as
part
of
the
takeover
of
Katz
Networks
for

$302
million
in
2017.
 

Scripps
operates
a
portfolio
of
more
than
60
stations
in
more
than
40
U.S.
markets.