Sinclair Broadcast Group Inc., one of the largest broadcasting companies in the United States, is making significant moves to sell off a portion of its station portfolio. Sources familiar with the matter have disclosed that the company is looking to sell more than 30% of its stations, with over 60 stations across the country identified for potential sale.
The company has enlisted the services of investment banker Moelis to assist with the sale process, which includes stations affiliated with major networks such as Fox, NBC, ABC, CBS, and the CW. These stations are estimated to have generated $1.56 billion in revenue for the years 2023 and 2024.
Sinclair is open to selling all or some of the stations, particularly those in top markets like Minneapolis, Portland, Pittsburgh, Austin, and Fresno. CEO Chris Ripley has indicated that the company is willing to part with certain assets to unlock value and reduce its debt burden.
This decision comes amid challenges facing the broadcast TV industry, as millions of Americans continue to cancel traditional pay TV subscriptions. Sinclair has seen a significant decline in its market value over the past five years, losing over 70% of its market value. The company currently has a market capitalization of $975 million and an enterprise value of $4.7 billion.
Sinclair has been actively seeking buyers for its stations since February and is also exploring options for its Tennis Channel. By divesting certain assets, Sinclair aims to streamline its business operations and improve its financial position in a rapidly evolving media landscape.
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