EW Scripps considers selling black culture broadcast network Bounce TV | Wilnesh News

EW ScrippsScripps Chief Executive Adam Symson said one of the largest local television broadcasters in the United States has hired a financial adviser to evaluate interest in acquiring Bounce TV, a wireless network for African Americans.

The sales process follows Paramount Worldwide Last year, I shopped around at BET Media Group, a black entertainment company, but finally decided not to sell it. In an exclusive interview with CNBC, Simson said Scripps has been approached by parties interested in the potential deal, many of them in Black leadership, expressing interest in acquiring Bounce TV. If Scripps seeks a deal, it hopes to attract a price tag in the hundreds of millions of dollars, people familiar with the matter said.

EW Scripps trades at about $3.70 per share, giving it a market valuation of about $315 million. The stock has fallen more than 50% this year on concerns that pay-TV cancellations will reduce the broadcast network’s audience.

Symson declined to comment on the names of the bidders or the potential price for Bounce TV. A deal could be struck around the middle of the year or in the third quarter, people familiar with the matter said.

“Last year we saw a significant increase in the number of inbounds and conversations we had with interested and qualified potential suitors,” Simson said. “The early BET process, while never completed, may have opened a window into the power of Bounce.”

Simson said some advertising agencies and big brands earmark some spending specifically for minority-controlled businesses, which can increase the value of media assets if they are sold from conglomerates to black owners. He added that platforms like Bounce TV could also serve as a landing point for a catalog of Black creators.

Scripps officials began informing Bounce TV employees of inbound interest on Tuesday, according to a person familiar with the matter.

First launched in 2011, Bounce TV is a free wireless network that broadcasts syndicated shows, movies and original content. All content is intended for an African American audience. Bounce TV’s comedy “The Johnson,” created by Deji LaRay, is entering its fourth season.The network also launched new comedy series“Mind Your Business,” premieres June 1.

Bounce TV’s ratings have improved in recent years despite the struggles of traditional media. In the first quarter, Bounce TV’s linear TV ratings grew 14% and connected TV ratings grew 9%, Symson said. About 70% of Bounce TV’s viewers come via broadcast. The other 30% is through pay TV and streaming, he said.

While Symson declined to reveal specific information about Bounce TV’s finances, he said the company’s revenue has doubled since acquiring part of Katz Networks. 2017 USD 302 million.

Scripps operates more than 60 radio stations in more than 40 U.S. markets.