Sinclair considers possibility of selling 30% of broadcast stations

Welcome to Extreme Investor Network, where we provide you with the latest and most valuable insights in the world of business news. Today, we will be discussing the recent developments at Sinclair Broadcast Group Inc., one of the largest owners of broadcast stations in the U.S.

Sinclair is looking to sell more than 30% of its footprint, with over 60 stations in various regions of the U.S. up for sale. The company has hired Moelis as its investment banker to handle the sale process. These stations, which are a mix of affiliates including Fox, NBC, ABC, CBS, and the CW, have an estimated average revenue of $1.56 billion for 2023 and 2024.

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Sinclair CEO Chris Ripley announced during the company’s earnings conference call that they are open to offloading parts of their business to unlock their true value. This decision comes as the company seeks to address its undervaluation and reduce its debt.

In addition to the station sales, Sinclair is also exploring options for its Tennis Channel, a cable TV network that features both tennis and pickleball matches. This move is part of Sinclair’s broader strategy to streamline its operations and focus on core assets.

The decision to sell off stations and explore options for the Tennis Channel comes after Sinclair rebranded and reorganized its business divisions last year. The split into Local Media and Ventures units was driven by tensions within the Smith family, shareholders, and board directors.

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Furthermore, the sale of stations comes at a strategic time as the 2024 election approaches, bringing with it high political advertising revenue for broadcast TV companies. Sinclair has already pre-booked $77 million in political advertising for the second half of the year, signaling positive growth in this area.

Overall, Sinclair’s stock was up 12% following the announcement of the station sales, showing investor confidence in the company’s strategic decisions. Stay tuned to Extreme Investor Network for more updates on this developing story and other key developments in the world of business news.

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