Scripps Sells Station For Bargain Basement Price
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FTVLive told you yesterday that Scripps to sell its Fort Myers-based television station, WFTX, to Sun Broadcasting for $40 million. The sale will transfer ownership of the FOX affiliate to a company that already holds a significant footprint in the Southwest Florida media market.
The buyer, Sun Broadcasting, is a private operator that owns several other local media outlets, including the conservative talk radio station 92.5 FOX News and the local CW television affiliate, which notably airs news produced by competitor WINK-TV. This acquisition further concentrates local media ownership, placing a key network affiliate under the same corporate roof as other prominent local news and opinion sources.
In the official announcement, Scripps stated it intends to use the proceeds from the sale to reduce its corporate debt.
“The sale of WFTX to Sun Broadcasting will put the station in the hands of a locally based company with deep roots in the Southwest Florida community,” said Scripps President and CEO Adam Symson. “When opportunities like this arise, we evaluate our business strategies to determine whether we are the best owners for that station or whether a swap or sale makes the most sense. In this case, we believe WFTX and its viewers will be well cared for by the new owners, and Scripps is able to use the transaction to reduce debt and improve our station portfolio’s financial profile.”
Scripps anticipates the deal will close in the fourth quarter of this year, following standard regulatory approvals. The company noted that this particular transaction does not require any special waivers or relief from current federal rules governing television station ownership.
Two points stand out in this transaction: the concentration of local media and the sale price.
Increased Market Consolidation: Sun Broadcasting's acquisition of a "Big Four" network affiliate (FOX) significantly strengthens its position in the Fort Myers-Naples market. By adding WFTX to its portfolio alongside 92.5 FOX News radio and The CW, Sun now controls a more powerful combination of local television and radio outlets, reducing the number of independent media owners in the region.
A Questionable Price Tag: For a major network affiliate in a growing Florida market, the $40 million sale price seems markedly low. Broadcast television stations, with their valuable spectrum licenses and established network affiliations, have historically commanded much higher valuations. This figure could suggest several possibilities:
Scripps may be a highly motivated seller, eager to offload assets to manage its debt load, even at a discount.
The station's recent financial performance or ratings may have been below industry averages.
The deal could include other non-cash considerations or debt assumptions not detailed in the initial press release.
This sale comes on the heels of another major move by Scripps, which announced a station swap with Gray Media in July. That separate transaction, involving stations in five other markets, is currently under review by federal regulators as it does require relief from media ownership rules.
