Scripps Mulling Sale of Black Culture and Entertainment Channel Bounce TV

Broadcasting companies are feeling the squeeze these days. Programming costs and affiliate fees are continuing to rise, and broadcasters have to keep their retransmission fee demands within a certain range or risk being dropped by distributors in carriage disputes. E.W. Scripps is one such broadcaster that finds itself facing myriad financial pressures, which could explain a new report from CNBC that suggests that the company is looking to sell its Black-focused culture and entertainment network Bounce TV.

Key Facts:

• CNBC reports Scripps has hired a bank to evaluate the potential sale of Bounce TV.
• Many parties interested in acquiring BET from Paramount last year have contacted Scripps.
• Scripps’ stock has fallen more than 50% this year amidst concerns driven by cord-cutting.

CNBC’s report indicates that Scripps has gone as far as hiring a bank to help it evaluate offers for Bounce TV. The company hopes to fetch hundreds of millions of dollars for the channel, and the report cites people familiar with the process who say a deal could happen as early as the middle of the year.

Scripps has a market valuation of around $315 million, with a share price hovering near $3.70. Concerns related to cord-cutting have driven the company’s stock price down more than 50% in 2024 alone, and a pay-TV industry that lost more than 7 million customers in 2023 is not likely to ease those concerns any time soon.

Bounce TV is a free, over-the-air network that first debuted in 2011. It offers a combination of syndicated shows and movies alongside original content. The channel sees 70% of its audience watch through over-the-air sources. Ratings have been climbing for Bounce TV, even as other linear channels see big declines; in the first quarter of 2024, viewership grew 14% on linear sources and 9% on connected TVs.

Who Could Pursue Bounce TV?

CNBC also reports that Scripps has been approached by several parties interested in acquiring Bounce TV. Scripps CEO Adam Symson told CNBC that many of the outlets who showed interest in acquiring BET when Paramount shopped the channel last year have contacted Scripps about Bounce TV.

“The number of inbounds and conversations that we have had with interested and qualified potential suitors has picked up significantly over the last year,” Symson told CNBC. “The earlier BET process, which was never consummated, may have opened up people’s eyes to the power of Bounce.”

Byron Allen seems like the most likely party to have contacted Scripps regarding Bounce TV. Allen showed interest in BET not once, but twice over the course of 2023, and also made bids for Paramount Global and ABC when it appeared Disney was preparing to move on from that network. Allen also contacted Scripps about purchasing a handful of its local stations in various markets in November.

There could be a host of other interested parties circling Bounce TV, as Paramount was contacted by multiple parties who potentially wanted to buy BET before ultimately pulling it off the sale table. Media companies of every size are trying to consider the best assets to keep as they grapple with an audience shifting increasingly to digital platforms, and that deliberation process has led Scripps to seriously consider moving on from Bounce TV.