What Happened?
Shares of media, broadcasting, and digital services company E.W. Scripps (NASDAQ: SSP) jumped 6.9% in the afternoon session after the company received an unsolicited acquisition proposal from Sinclair, Inc. for $7.00 per share. The offer consisted of $2.72 in cash and $4.28 in Sinclair common stock for each Scripps share. This price represented a 200% premium over the stock's 30-day volume-weighted average price as of November 6. Sinclair, which already reported a 9.9% stake in the company, noted the deal could create about $325 million in annual savings and new revenue opportunities. Scripps confirmed it received the proposal and its board would review the offer with legal and financial advisors. The company also advised its shareholders that no action was needed at that time.
The shares closed the day at $4.45, up 8% from previous close.
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What Is The Market Telling Us
E.W. Scripps’s shares are extremely volatile and have had 80 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 3.8% on the news that comments from a key Federal Reserve official bolstered hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.
E.W. Scripps is up 76% since the beginning of the year, and at $4.44 per share, has set a new 52-week high. Investors who bought $1,000 worth of E.W. Scripps’s shares 5 years ago would now be looking at an investment worth $324.43.
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