Colorado TV news owner slaps down bid by conservative Sinclair broadcast giant

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The parent company of multiple local TV news stations in Colorado is fighting back against a hostile takeover bid from a conservative rival.

This week, E.W. Scripps, which owns Denver7 and KOAA News5 in Colorado Springs, rejected an aggressive offer by Sinclair Broadcast Group to buy the company.

Adam Symson, the president and CEO of Scripps, emailed his staff on Tuesday about the latest development in the Trump-era TV merger wars.

“Our board unanimously decided to reject the proposal as the board determined, after careful review, that Sinclair’s offer was not in the best interests of Scripps and our shareholders as well as our employees and the many communities and audiences we serve across the United States,” he wrote, according to an email obtained by this newsletter.

Employees at Denver7 and KOAA News5 might breathe a little easier — at least for now.

“This news has no impact on your day-to-day work, and we remain focused on executing our strategy,” their CEO told them. “It’s business as usual at Scripps, and our audiences, customers and communities expect the same high level of service we’ve always provided.”

In a statement on its website, Sinclair offered this:

“We are disappointed that despite Scripps encouraging Sinclair to make a proposal, Scripps’ board rejected the proposal without engaging. Our proposal was based on previous discussions and was responsive to concerns about Scripps’ communities, employees and shareholders. It delivers significant strategic and financial benefits for both companies and all shareholders and represents a substantial premium over both Scripps’ unaffected and current share price. We call on Scripps to engage with us regarding our proposal. We believe Scripps’ shareholders deserve a full and fair evaluation of this opportunity.”

As this newsletter reported earlier this month, Sinclair’s attempt to gobble up Scripps would have given the conservative broadcaster its first foothold in Colorado. If successful, it would also turn Sinclair into a local broadcasting behemoth with some 240 stations nationwide.

In some cities, like Milwaukee, Cincinnati, and Detroit, news of Sinclair’s attempt to take over a local TV station made headlines.

Here in Colorado, the news didn’t make it much further than national wire reports despite its potential to drastically shakeup the local TV news landscape in at least two of the state’s largest cities. That’s in contrast to a different TV takeover currently in the works that is closer to reality.

Nexstar, which owns KDVR Fox31, is in a public comment period for its planned purchase of Tegna, which owns Denver’s 9NEWS.

Some of Colorado’s top Democratic leaders — as well as one of the state’s most outspoken and influential conservatives — have thrown serious shade on the deal, saying it would be bad for the state’s residents.

Colorado’s Democratic attorney general, Phil Weiser, who is running for governor, has promised to “closely review this proposed merger to determine if it will harm Coloradans.”

This newsletter is proudly sponsored by The Colorado Health Foundation. As a proud funder of Colorado Media Project, the home of Press Forward Colorado, the CHF understands that healthy communities need a healthy news ecosystem.

This year, The Colorado Health Foundation will be working to combat disinformation and misinformation, and helping nonprofits build media literacy.