E.W. Scripps to split into two
By Erina Lin, Tuesday 16 October 2007 at 22:10 :: Management :: #707 :: rss
E.W. Scripps says a plan to split itself into two separate companies has been approved by its board. Scripps Network Interactive, which includes the company’s cable networks and Internet assets, will be spun off to shareholders, while E.W. Scripps will hold onto its newspapers and broadcast TV businesses.
The move follows Belo’s decision to spin-off of its newspaper business from its broadcast business two weeks ago.
According to paidContent, the move is aimed to relieve Scripps’ burden from recessional broadcast and newspaper operations.
Scripps Networks Interactive has $1.4 billion annual revenues and 2,100 employees, while E.W. Scripps has just $1.1 billion, but 7,100 employees.
Scripps Networks Interactive has assets including HGTV, The Food Network, DIY Network, the Fine Living Television Network and Great American Country, and Internet properties such as Foodnetwork.com, Shopzilla.com and Uswitch.com.
Due to the separation, which is expected to be completed in Q2 2008, current CEO Kenneth Lowe will be named CEO of Scripps Networks Interactive, while E.W. Scripps will be lead by COO Richard A. Boehne.
It seems that the market is optimistic about this news, as moves to unlock value are usually praised. Belo shares boosted nearly 19 percent on the day it announced its spin-off.
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