As part of a “comprehensive restructuring” plan, The E.W. Scripps Co. is selling off its 34 radio stations. The media company has retained Kalil & Co, Inc. to handle the process. In an announcement, E.W. Scripps said the restructuring is “expected to yield more than $30 million in annual cost savings.”
“Today, Scripps is a dynamic leader in the media industry through its strong local TV station portfolio, its growing multicast network, its national news network and its podcasting business,” Scripps President/CEO Adam Symson said. “The enterprise-wide restructuring positions us well for continued growth while maintaining high-quality journalism as our central focus.”
Scripps’ 34 stations in Boise; Knoxville; Milwaukee; Omaha; Springfield, MO; Tucson; Tulsa and Wichita, covering a number of different formats.
During the third quarter of 2017, the company began its restructuring work with a $2.4 million restructuring charge. The company will take a restructuring charge of $2 million in the fourth quarter, estimates a $4 million charge in the first quarter and expects to take smaller quarterly charges into 2019.
The annual cost savings are driven by reductions in head count and operating expenses over the next 12-18 months. These include centralization of services and technology; sharing of resources; elimination of redundant positions and services; and other expense reductions.
“This plan is consistent with our goal to create both short-term and long-term value by improving margins and cash flow in our local media business and supporting the growth of our national businesses,” said Symson. “Our restructuring analysis also led us to determine the time is right to find a new owner for our radio group that can provide the focus and resources the stations and their creative, devoted employees deserve.”