EW Scripps considers selling black culture broadcast network Bounce TV

Tanika Ray, Alison Fows, Kim Wheatley, Yvette Nicole Brown and Tisha Campbell (Tisha Campbell) attend the Los Angeles Series Premiere of Bounce TV’s Act Your Edge at London West Hollywood on February 27, 2023 in Beverly Hills, California.

Charlie Calais

EW ScrippsScripps CEO Adam Simson says one of the largest U.S. local television broadcasters has hired a financial adviser to gauge interest in acquiring Bounce TV, a wireless network for African Americans.

Following the sales process Paramount Worldwide Last year I shopped for BET Media Group, a black entertainment company, but ultimately decided not to sell. In an exclusive interview with CNBC, Simson said Scripps has been approached by parties interested in a potential deal, many of them with black leadership, expressing interest in acquiring Bounce TV. If Scripps wants a deal, it expects to attract a price tag in the tens of millions of dollars, according to people familiar with the matter.

EW Scripps trades at about $3.70 per share, giving it a market value of about $315 million. The stock has fallen more than 50% this year on concerns that canceling pay-TV will reduce viewership for broadcast networks.

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

“Last year we saw a significant increase in the number of conversations we had with interested and qualified potential suitors,” Simson said, “The initial BET process, although never completed, may have opened a window on the strength of the bounce.”

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

Scripps officials began notifying Bounce TV employees of the insider’s interest on Tuesday, a person familiar with the matter said.

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

EW Scripps CEO Adam Simson

Source: EW Scripps

Bounce TV’s ratings have improved in recent years despite struggles from traditional media. In the first quarter, Bounce TV’s linear TV viewership grew 14% and connected TV viewership grew 9%, Simson said. About 70% of Bounce TV’s audience comes from broadcast. The remaining 30% is through pay TV and streaming, he said.

Although Simson declined to disclose specifics about Bounce TV’s financials, he said the company’s revenue has doubled since acquiring part of the Katz network. 2017 USD 302 million.

Scripps operates more than 60 radio stations in more than 40 US markets.