Shares of Sinclair, one of the largest U.S. broadcast station owners, jumped the most in over a year in premarket trading after the company announced a “strategic review of its broadcast business” aimed at “optimizing value creation across its portfolio.”
The broadcaster, based in Hunt Valley, Maryland – just north of the Baltimore metro area – owns 178 stations across 81 U.S. markets. The company announced it will evaluate “all value-enhancing opportunities, including acquisitions, strategic partnerships, and business combinations, with potential partners in the broadcast and the broader media and technology ecosystem.”
“Scale wins in today’s broadcast industry, and we intend to lead that consolidation,” CEO Chris Ripley wrote in a statement, adding, “Our Broadcast business’s industry-leading performance positions us as the partner of choice for value creation. Simultaneously, we expect separating Ventures will crystallize significant value that the market has overlooked within our current structure, giving us even more flexibility to drive our broadcast strategy forward.”
Sinclair is also considering spinning off its other ventures, which include the Tennis Channel and a digital advertising agency. The unit holds cash, private equity stakes in various businesses, and real estate valued at $726 million.
Shares jumped 24.5% in premarket trading, and if gains hold into the cash session, it would mark one of the largest daily increases since Nov. 2, 2023, when shares rose 34%.
Year to date, the stock has stumbled, down 22% as of Monday’s close.
The review follows solid financial performance, including year-over-year ad revenue growth, though no transaction is guaranteed.
Meanwhile, consumer behavior via UBS data points to continued shifts from traditional cable and satellite TV to streaming. This trend has been well underway for 15 years.
“Streaming surpasses traditional TV in May,” analyst John Hodulik told clients last month.
CEO Ripley understands the fate of traditional TV ahead of the 2030s …
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