Scripps Goes National By Buying Ion for $2.65 Billion

Local TV broadcast station owner EW Scripps is jumping into the national television business by buying Ion Media for $2.65 billion in a deal backed by Warren Buffett’s Berkshire Hathaway. Berkshire Hathaway is investing $600 million in Scripps to help pay for Ion and make a bet on free over-the-air television. Scripps already had a national presence with Katz Networks, which runs channels like Bounce and Court TV. Ion reaches 96% of US homes with stations in 62 markets and 124 affiliated stations. At this point its signals are carried on cable via must carry and it doesn’t benefit from lucrative retransmission consent fees. The acquisition makes Scripps the largest holder of broadcast spectrum at a time the industry is transitioning to ATSC 3.0, which could create new business models. Scripps will divest 23 Ion stations to bring the company into compliance with Federal Communications Commission ownership regulations. Scripps has agreed to a transaction with a buyer, which has agreed to maintain Ion affiliations for the stations. Those stations will also carry the Katz networks in markets where they are available.