CINCINNATI – E.W. Scripps Co (NASDAQ:SSP), a major player in television broadcasting, announced the shutdown of its 24/7 national network programming under the Scripps News brand after November 15, according to a recent 8-K filing with the Securities and Exchange Commission.
The decision to cease operations will coincide with the departure of Kate O’Brian, President of Scripps News, at the year's end. O’Brian will receive severance benefits as outlined in the company's executive severance plan detailed in their 2024 proxy statement.
The discontinuation of the 24/7 news format will lead to the termination of more than 200 jobs. However, Scripps News will continue to maintain a presence on streaming and digital platforms, providing live weekday coverage and field reporting. Approximately 50 staff members are expected to remain with the company to contribute to local news reporting and to produce streaming and digital content, all under the Scripps News brand.
In other recent news, The E.W. Scripps Company announced that its Chief Operating Officer, Lisa Knutson, will be exiting the company by the end of the year as her position is being eliminated. The company's board has approved a one-time payment of $140,400 to cover Knutson's medical insurance premiums until her eligibility for Medicare. No successor or changes to the executive team following Knutson's departure have been announced yet.
In terms of financial performance, Scripps reported a significant 40% surge in political advertising revenue in the first half of 2024 during its Q2 earnings call and raised its full-year guidance for this segment. Despite this positive development, the company experienced a downturn in its core advertising revenue and a decrease in its Networks division revenue.
To address these challenges, Scripps has outlined a strategy that includes forming strategic partnerships, expanding content, and implementing a debt reduction plan. The company is also in the process of selling assets, including Bounce, with the aim of generating $1,500 million in cash proceeds.
InvestingPro Insights
As E.W. Scripps Co (NASDAQ:SSP) navigates this significant operational shift, recent InvestingPro data and tips offer additional context for investors. The company's stock has shown a significant return of 28.29% over the last week, suggesting that the market may be reacting positively to the restructuring news. This aligns with an InvestingPro Tip indicating "Significant return over the last week."
However, it's important to note that SSP's stock price has fallen significantly over the last year, with a one-year price total return of -59.03%. This volatility is reflected in another InvestingPro Tip stating that "Stock price movements are quite volatile."
Despite these challenges, SSP is trading at a low Price / Book multiple of 0.25, which could indicate potential value for investors. Additionally, analysts predict that the company will be profitable this year, which may be a positive sign as Scripps implements its new strategic direction.
For those seeking a more comprehensive analysis, InvestingPro offers 8 additional tips that could provide further insights into SSP's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.