Signage is displayed outside the Sinclair Broadcast Group Inc. headquarters in Cockeysville, Maryland, U.S.

Andrew Harrer | Bloomberg | Getty Images

Sinclair disclosed a stake in fellow broadcast station owner E.W. Scripps on Monday, in a move to push toward a merger of the companies.

Sinclair, which acquired a roughly 8% position in Scripps per the filing, recently launched a strategic review of its own business that could result in a tie-up. Scripps, for its part, has seen its struggles mount in the competitive industry and is among the smallest of its peers.

In the filing, Sinclair said it has been engaged in “constructive” discussions regarding a deal and believes that, if it were to reach an agreement, a transaction could be completed within nine to 12 months.

Sinclair said in the filing that based on trading multiples, there would be an expected $300 million in synergies if a merger were to take place.

Scripps’ stock rose 40% on Monday while Sinclair’s stock gained almost 5%.

Sinclair, which acquired the stake for about $15.6 million, declined to comment beyond the SEC filing.

In a statement on Monday, Scripps said its board “will take all steps appropriate to protect the company and the company’s shareholders from the opportunistic actions of Sinclair or anyone else.”

“Scripps’ board of directors and management are focused on driving value for all of the company’s shareholders through the continued execution of its strategic plan,” the company said in its statement. “The board and management are aligned on doing only what is in the best interest of all of the company’s shareholders as well as its employees and the many communities and audiences it serves across the United States.”

The statement added that the board continues to evaluate “any transactions and other alternatives that would enhance the value of the company and would be in the best interest of all company shareholders.”

Broadcast TV station group owners have suffered like the rest of media companies in recent years due to the shift away from the traditional pay-TV bundles and toward streaming. These broadcast stations, for the most part, make the majority of their money from so-called retransmission fees, which are paid on a per-subscriber rate by traditional TV distributors.

Broadcast station owners like Sinclair have been eager to do mergers as they push for deregulation under the Trump administration.

In August, Nexstar Media Group, the biggest owner of these stations, agreed to acquire Tegna for $3.54 billion.

Sinclair, meanwhile, is also considering spinning off or splitting its ventures unit, which includes pay-TV network The Tennis Channel and marketing technology business Compulse, which was recently rebranded to Digital Remedy.

Sinclair and its advisors held discussions with potential merger partners earlier this year, CNBC previously reported.

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Caitlin Clark, #22 of the Indiana Fever, brings the ball up court during the first half of a WNBA game against the Chicago Sky at Wintrust Arena in Chicago on Aug. 30, 2024.

Melissa Tamez | Icon Sportswire | Getty Images

The WNBA and E.W. Scripps announced on Friday a new multiyear media rights agreement to carry Friday night WNBA matchups on Ion.

The new agreement also includes the “WNBA on Ion” studio show, the first weekly broadcast show dedicated exclusively to WNBA coverage.

The value of the deal was not disclosed, but media reports peg the original deal that expires at the end of the 2025 season at an average of $13 million annually.

The WNBA has been airing games on Ion since 2023. This season, the network will broadcast 50 regular season games. Ion is available on pay TV and streaming platforms in more than 128 million homes, according to a news release.

The new agreement comes after Ion has seen huge growth with the WNBA and as the league gains in popularity thanks to stars such as Caitlin Clark and Angel Reese.

The network said WNBA Friday Night Spotlight viewership grew 133% year over year and more than 23 million unique viewers tuned into the coverage.

“Our robust partnership with the league has flourished, and we are thrilled to solidify ION’s status as the premier Friday night destination for WNBA action for years to come,” said Scripps CEO Adam Symson in the release.

WNBA Commissioner Cathy Engelbert said the partnership with Scripps has helped the league expand its reach and visibility.

“This new multi-year agreement reflects the growing excitement surrounding the league and the rising demand for WNBA games,” she said.

The league signed an 11-year media rights deal with Disney, Amazon and Comcast-owned NBCUniversal last July as part of the NBA’s media rights negotiation. The WNBA’s deal is valued at about $200 million per year, CNBC previously reported.

— CNBC’s Lillian Rizzo contributed to this report.

Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.

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