E.W. Scripps, a major local TV broadcaster in the U.S., has enlisted a financial advisor to explore acquisition offers for Bounce TV, its over-the-air network targeted towards African American viewers. Paramount Global had previously considered selling BET Media Group last year, attracting interest from several parties, many with Black leadership. Scripps hopes to fetch a price in the hundreds of millions for Bounce TV, amid a challenging year for its stock due to declining pay-TV subscribers affecting broadcast networks.
Symson declined to disclose the identities of potential bidders or the expected price for Bounce TV, but sources suggest a deal could be finalized around the middle of the year or the third quarter. The company has seen a surge in inquiries from interested and qualified potential buyers, potentially sparked by the earlier interest in BET Media Group. Advertising agencies and big brands setting aside funds for minority-owned businesses can boost the value of media assets transitioning from conglomerates to Black owners, making platforms like Bounce TV an attractive investment opportunity.
Launched in 2011, Bounce TV is a free over-the-air network featuring syndicated shows, movies, and original content tailored for African American audiences. Shows like “Johnson,” created by Deji LaRay, and the upcoming comedy series “Mind Your Business” have helped bolster ratings for the network, with viewership growing by 14% on linear and 9% on connected TVs in the first quarter. While about 70% of Bounce TV’s audience comes from over-the-air broadcasts, the remaining 30% is through pay TV and streaming platforms.
Despite a reluctance to provide specific financial figures for Bounce TV, Symson noted that Scripps has doubled the network’s revenue since acquiring it as part of the takeover of Katz Networks for $302 million in 2017. The company operates more than 60 stations in over 40 U.S. markets and has begun informing Bounce TV employees about the increased interest from potential suitors. The network is seen as a valuable asset, especially considering the rise in demand for diverse content and the potential for monetizing Black creators’ catalogs on platforms like Bounce TV.
The current environment of heightened interest in minority-controlled businesses and media assets, combined with the success of Bounce TV in engaging African American viewers, has positioned the network as a prime target for acquisition. The potential sale presents an opportunity for Scripps to capitalize on the network’s growth and profitability, with interested parties looking to leverage the network’s existing audience and content offerings. As discussions progress towards a possible deal in the coming months, the outcome could significantly impact the future landscape of Black-focused media and the broader media industry in the U.S.
