One of the largest local TV broadcasters in the U.S., E.W. Scripps, has made headlines by hiring a financial advisor to evaluate interest in acquiring Bounce TV, its over-the-air network tailored for African American audiences. This move comes in the wake of Paramount Global exploring the sale of BET Media Group, a Black entertainment company, last year, albeit deciding against it. The potential sale of Bounce TV has piqued the interest of several bidders, including those with Black leadership, hinting at a lucrative deal on the horizon.
With E.W. Scripps trading at around $3.70 per share and a market valuation of approximately $315 million, the expectation is that the sale of Bounce TV could command a price tag in the hundreds of millions. Despite the stock’s decline by over 50% this year due to concerns over pay-TV cancellations impacting broadcast networks, the inbound interest in acquiring Bounce TV has injected optimism into the situation. Symson has refrained from disclosing bidder names and potential prices, suggesting that a deal could materialize around mid-year or the third quarter.
The recent surge in interest from potential suitors can be attributed to the growing recognition of the value of minority-controlled businesses in the media industry. Advertising agencies and big brands are increasingly allocating funds specifically for minority-owned ventures, boosting the appeal of media assets transitioning from conglomerates to Black owners. For Bounce TV, this could signify not only a financial windfall but also an opportunity to serve as a platform for Black creators to showcase their work.
Since its inception in 2011, Bounce TV has carved a niche for itself as a free over-the-air network dedicated to delivering a mix of syndicated shows, movies, and original content tailored to African American viewers. Notable series such as “Johnson” and the upcoming “Mind Your Business” have garnered a loyal following. Despite the challenges faced by traditional media, Bounce TV has managed to increase its viewership, with a commendable 14% growth on linear and 9% on connected TVs in the first quarter alone.
While specifics regarding Bounce TV’s financials remain undisclosed, Symson revealed that the network’s revenue has doubled since E.W. Scripps acquired it as part of the Katz Networks takeover in 2017. This growth trajectory, coupled with the network’s loyal audience base, positions Bounce TV as a lucrative asset in the evolving media landscape. E.W. Scripps’ extensive portfolio comprising over 60 stations across 40 U.S. markets further underscores the strategic value of Bounce TV within its broadcasting repertoire.
The impending sale of Bounce TV by E.W. Scripps represents a pivotal moment for the network and the broader media industry. With heightened interest from potential buyers and the prospect of Black ownership amplifying its value, Bounce TV is poised for a transformative chapter in its trajectory. As negotiations unfold and the future ownership landscape takes shape, the significance of diverse representation in media ownership and content production comes to the forefront, underscoring the evolving dynamics of the industry as a whole.
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