ABC

Sinclair Broadcast Group has made an unsolicited bid to buy rival station owner E.W. Scripps just a week after disclosing it had acquired shares of the company’s stock.

Sinclair filed a statement Monday with the Securities and Exchange Commission saying it will offer Scripps $7 per share, consisting of $2.72 in cash and $4.28 in combined company common stock. The price is a 200% premium over the 30-day average for Scripps shares as of Nov. 6.

Sinclair revealed on Nov. 17 that it gained a stake in Scripps through the acquisition of publicly traded shares. Scripps, which operates 61 TV stations and owns the ION network, is valued at around $393 million.

The Cincinnati-based Scripps said in a statement saying the company’s board of directors “will carefully review and evaluate any proposals, including the unsolicited Sinclair offer.”

The statement added that the board will “act in the business interest of the company, all of its shareholders as well as its employees and the many communities it serves across the United States.”

The company’s stock was up around 7.5% on the news of the Sinclair offer, closing at $4.43 a share Monday afternoon.

A takeover of Scripps would be culturally jarring for the local newsrooms at its stations. The company was founded in 1878 with a chain of daily newspapers that defined itself through journalistic independence. The company’s longtime motto is “Give light.”

The Baltimore-area Sinclair is known for the conservative politics of its owners, led by David D. Smith, who have had their views amplified through the company’s local TV news coverage over the years.

Sinclair most recently tried to flex its muscle when it pulled “Jimmy Kimmel Live!” off its ABC-affiliated stations in September after the late-night host made comments about the political affiliation of the man accused of killing right-wing political activist Charlie Kirk.

Sinclair demanded that Kimmel make “a meaningful donation” to Kirk’s organization Turning Point USA in addition to an apology. None was offered, and after a week, Sinclair put the program back on its air with zero concessions from ABC.

Regardless of political leanings, all major TV station ownership groups have urged the Federal Communications Commission to lift the limit on how much of the country their outlets can cover.

TV station owners are limited to reaching 39% of the country, which companies say puts them at a disadvantage in competing against tech giants that have no such restriction in their media endeavors.

While consumer advocates believe consolidation will reduce the diversity of voices in communities, TV executives have argued that it’s no longer economically viable to have multiple station owners in a single market, often covering the same major stories.

Consolidation would also give TV station owners more clout in their negotiations for carriage fees they receive from cable and satellite providers. Such fees are vital as TV stations have struggled to maintain ad revenues due to a decline in ratings and more consumers turning to streaming video platforms.

Sinclair’s attempt to buy Scripps comes after its failed effort to acquire Tegna Inc., which agreed to a $6.2-billion deal to merge with Nexstar Media Group. The deal will require regulatory approval as it would give Nexstar’s stations the ability to reach 80% of the U.S.

Station owners calling for consolidation have been hopeful they had an ally in Trump-appointed FCC Chairman Brendan Carr.

But a social media post suggested that President Trump may be wary of consolidation, saying it could give greater influence to broadcast networks NBC and ABC. The president has been highly critical of the news coverage of both networks, even threatening to go after their TV station licenses.

ESPN football is returning to YouTube TV after the service and The Walt Disney Co. settled their contentious contract dispute — ending the 15-day blackout of Disney channels.

The Disney-owned channels and ABC station signals were being restored for YouTube TV’s 10 million customers, the companies announced late Friday. The breakthrough came after the companies agreed on a new distribution deal for YouTube, which is owned by Google, replacing the previous pact that had expired on Oct. 30.

Financial terms were not disclosed.

“This new agreement reflects our continued commitment to delivering exceptional entertainment and evolving with how audiences choose to watch,’’ Disney Entertainment Co-Chairmen Alan Bergman and Dana Walden and ESPN Chairman Jimmy Pitaro said in a statement.

“It recognizes the tremendous value of Disney’s programming and provides YouTube TV subscribers with more flexibility and choice. We are pleased that our networks have been restored in time for fans to enjoy the many great programming options this weekend, including college football.”

The outage surpassed the length of last year’s clash between Disney and DirecTV, which saw Disney channels being dropped for 13 days.

YouTube and Disney have been bickering over distribution fees. Google had rebuffed Disney’s earlier demands for fee increases to carry ESPN, ABC and other channels. The Burbank entertainment giant wanted to maintain revenue to help pay for Disney’s content production, streaming ambitions and ESPN’s gargantuan sports rights deals, including long-term contracts with the NFL and the NBA.

YouTube pushed back, pointing to declining viewership for ABC and other channels, for which Disney had been seeking fee increases.

Disney and other programmers have been trying to boost fees to offset the loss of pay-TV customers who have cut the cord or switched to smaller streaming bundles. YouTube also had accused Disney of holding out in an effort to scoop up aggravated YouTube TV subscribers considering a switch to its Fubo or Hulu + Live TV services, which compete directly with YouTube TV. The services offer most of the same TV channels.

The dispute highlighted the ongoing tensions between pay-TV distributors and programmers amid the shift to streaming. In 2021, the Disney channels were knocked off YouTube TV for two days in an earlier fee dispute.

A shrinking pool of big-bundle subscribers increasingly has been asked to shoulder higher programming expenses. Distributors, including YouTube TV, have tried to hold the line on prices, cognizant that their customers are tired of ever-escalating monthly bills. YouTube TV offered a package of channels for $35 a month when it launched in 2017. The service now costs $82.99 a month.

The cost of carrying broadcast channels (ABC, CBS, Fox and NBC) and sports networks, including ESPN, has skyrocketed due to the huge jump in costs for TV rights deals with major sports leagues. ESPN is the most expensive basic cable channel, costing pay-TV distributors nearly $10 a month per subscriber home.

Disney has defended its costs to pay-TV distributors, arguing that it provides high-quality programming that consumers love.

The company also is trying to transition its businesses to focus more heavily on direct-to-consumer streaming services, including Disney+ and Hulu + Live TV, that bypass the traditional pay-TV distributors.

The skirmish was just the latest between YouTube and a major programming company.

Since August, Rupert Murdoch’s Fox Corp., Comcast’s NBCUniversal and Spanish-language broadcaster Univision have all complained that YouTube TV has been trying to use its market muscle to squeeze them for concessions.

“Rather than compete on a level playing field, Google’s YouTube TV has approached these negotiations as if it were the only player in the game,” the Disney executives Pitaro, Bergman and Walden wrote in an Nov. 7 email sent to employees.

YouTube TV customers have been without Univision and Unimas since Sept. 30. That dispute centered on YouTube’s plan to group the Univision channels with other Spanish-language programming on a separate tier rather than offer the channels as part of YouTube’s basic packages.

Univision cried foul, in large part, because the switch would mean less revenue because programmers are paid rates based on the number of households that receive their channels. Fewer consumers pay for the Spanish-language add-on.

YouTube countered that Spanish-language viewers were watching Univision on the main YouTube free video site — and that service has remained available.

YouTube TV customers are bracing for another frustrating weekend.

For the last week, YouTube TV’s 10 million subscribers have been denied access to ESPN, ABC and other Walt Disney Co. channels in a dispute that has swelled into one of the largest TV blackouts in a decade. Instead of turning on “College GameDay,” “Monday Night Football” or “Dancing With the Stars,” customers have been greeted with a grim message: “Disney channels are unavailable.”

The standoff began Oct. 30 when the two behemoths hit an impasse in their negotiations over a new distribution contract covering Disney’s channels and ABC stations.

Google, which owns YouTube, has rebuffed Disney’s demands for fee increases for ESPN, ABC and other channels. The Burbank entertainment giant has been seeking a revenue boost to support its content production and streaming ambitions, and help pay for ESPN’s gargantuan sports rights deals.

Talks are ongoing, but the two sides remain apart on major issues — prolonging the stalemate.

“Everyone is kind of sick of these big-time companies trying to get the best of one another,” said Nick Newton, 30, who lives near San Francisco and subscribes to YouTube TV. “The people who are suffering are the middle-class and lower-class people that just love sports … because it’s our escape from the real world.”

Both companies declined to comment for this article.

The skirmish is just the latest between YouTube and programming companies. Since August, Rupert Murdoch’s Fox Corp., Comcast’s NBCUniversal and Spanish-language broadcaster TelevisaUnivision have all complained that YouTube TV was trying to use its market muscle to squeeze them for concessions.

Here’s a look at what’s driving the escalating tensions:

Google’s growing clout in television

The struggle between Disney and YouTube reflects television’s fast-shifting dynamics.

Disney has long entered carriage negotiations with tremendous leverage, in large part because it owns ESPN, which is a must-have channel for legions of sports fans.

Programmers, including Disney, structured their distribution contracts to expire near a pivotal programming event, such as a new season of NFL football. The timing motivated both sides to quickly reach a deal rather than risk alienating customers.

But for Google’s parent, Alphabet, YouTube TV is just a sliver of their business. The tech company generated $350 billion in revenue last year, the vast majority coming from Google search and advertising. That gives YouTube a longer leash to hold out for contract terms it finds acceptable.

“This dispute is not that painful for Google,” said analyst Richard Greenfield of LightShed Partners, noting that YouTube TV could probably withstand “two weekends without college football, and two weeks without ‘Monday Night Football’ — as long as their consumers stay with them.”

Disney, however, depends on TV advertising and pay-TV distribution fees. The week-long blackout has already dampened TV ratings, which means less revenue for the company.

Consumers like YouTube TV

For decades, throngs of consumers loathed their cable company — a sentiment that Disney and other programmers were able to use in their favor in past battles. Customer defections prompted several pay-TV companies to find a compromise to restore the darkened TV channels and stanch the subscriber bleeding.

But YouTube is banking on a more loyal user base, including millions of customers who switched to the service from higher-priced legacy providers.

“I’ll stick this thing out with YouTube TV,” Newton said, adding that he hoped the dispute didn’t drag on for weeks.

“This is one of the problems facing Disney,” Greenfield said. “It’s been a noticeable change in tone from past carriage fee battles. If customer losses stay at a minimum, then Disney is going to be in a tough place.”

It boils down to power and money

YouTube TV is the fastest-growing television service in the U.S. Analysts expect that, within a couple of years, YouTube TV will have more pay-TV customers than industry leaders Spectrum and Comcast.

In the current negotiations, Google has asked Disney to agree to lower its rates when YouTube TV surpasses Comcast’s and Spectrum’s subscriber counts. Disney maintains that YouTube already pays preferred rates, in recognition of its competitive standing, and that Google is trying to drive down the value of Disney’s networks.

“YouTube TV and its owner, Google … want to use their power and extraordinary resources to eliminate competition and devalue the very content that helped them build their service,” top Disney executives wrote last Friday in an email to their staff.

People close to YouTube TV reject the characterization, saying the service has been a valuable partner by providing a strong service that brings Disney billions of dollars a year in distribution revenue.

“The bottom line is that our channels are extremely valuable, and we can only continue to program them with the sports and entertainment viewers love most if we stand our ground,” the Disney executives wrote in last week’s email. “We are asking nothing more of YouTube TV than what we have gotten from every other distributor — fair rates for our channels.”

Higher sports rights fees

A major reason Disney is asking for higher fees is because it’s grappling with a huge escalation in sports costs.

Disney is on the hook to pay $2.6 billion a year to the NBA, another $2.7 billion annually to the NFL, and $325 million a year for the rights to stream World Wrestling Entertainment. Such sports rights contracts have nearly doubled in the last decade, leading to the strain on TV broadcasters.

In addition, deep-pocketed streaming services, including Amazon, Apple and Netflix, have jumped into sports broadcasting, driving up the cost for the legacy broadcasters.

The crowded field also strains the wallets of sports fans, and appears to be adding to the fatigue over the YouTube TV-Disney fight.

Newton wrote in a recent Twitter post that he was spending $400 a month for his various internet, phone and TV services, including Disney+ and NFL Sunday Ticket, which is distributed by YouTube TV.

“I’m already on all the major subscriptions to watch football these days,” Newton, a third-generation San Francisco 49ers fan, said. “You need Netflix. You need Peacock, you need Amazon Prime and the list goes on and on. I’m at the point where I’m not paying for anything else.”

Millions of YouTube TV subscribers could miss “Monday Night Football” on ESPN and ABC News’ election day coverage as the blackout of Walt Disney-owned channels stretches into a second week.

“Monday Night Football” features the Dallas Cowboys battling the Arizona Cardinals. In addition, several important political contests are on Tuesday ballots, including the New York City mayor’s election, gubernatorial races in Virginia and New Jersey, and California’s Prop. 50 to decide whether officials can redraw the state’s congressional map to favor Democrats.

Disney on Monday sought a temporary thaw in tensions with Google Inc. after the two sides failed last week to strike a new distribution contract covering Disney’s television channels on Google’s YouTube TV.

“Despite the impasse that led to the current blackout, we have asked YouTube TV to restore ABC for Election Day so subscribers have access to the information they rely on,” a Disney spokesperson said in a statement Monday. “We believe in putting the public interest first and hope YouTube TV will take this small step for their customers while we continue to work toward a fair agreement.”

A Google spokesperson was not immediately available for a comment.

ABC’s “World News Tonight With David Muir” is one of television’s highest rated programs.

More than 10 million YouTube TV customers lost access to ESPN, ABC and other Disney channels late Thursday after a collapse in negotiations over distribution fees for Disney channels, causing one of the largest recent blackouts in the television industry.

The two TV giants wrangled for weeks over how much Google must pay to carry Disney’s channels, including FX, Disney Jr. and National Geographic. YouTube TV — now one of the largest pay-TV services in the U.S. — has balked at Disney’s price demands, leading to the outage.

YouTube TV does not have the legal right to distribute Disney’s networks after its last distribution agreement expired.

“We know this is a frustrating and disappointing outcome for our subscribers,” a YouTube spokesperson said in a statement last week. “We continue to urge Disney to work with us constructively to reach a fair agreement that restores their networks to YouTube TV.”

YouTube has said that should the outage stretch for “an extended period,” it would offer its subscribers a $20 credit.

Spanish-language TelevisaUnivision-owned channels were knocked off YouTube TV in a separate dispute that has lasted more than a month. Televisa has appealed to high-level political officials, including President Trump and Federal Communications Commission Chairman Brendan Carr.

Last year, after Disney-owned channels went dark on DirecTV in a separate carriage fee dispute, Disney offered to make available to DirecTV subscribers its ABC coverage of the sole presidential debate between President Trump and then-Vice President Kamala Harris.

DirecTV viewed ABC’s offer as something of a stunt, noting the debate would be streamed. DirecTV countered by asking Disney to instead make all of its channels available.

That fee dispute resulted in a 13-day blackout on DirecTV, one that was resolved a few days later.

Heightened tensions in the television industry have led to numerous blackouts.

In 2023, Disney and Charter Communications were unable to iron out a new contract by their deadline, resulting in a 10-day blackout of Disney channels on Charter’s Spectrum service. A decade earlier, Time Warner Cable subscribers went nearly a month without CBS-owned channels.

Programming companies, including Disney, have asked for higher fees for their channels to help offset the increased cost of sports programming, including NFL and NBA contracts. But pay-TV providers, including YouTube have pushed back, attempting to draw a line to slow their customers’ ever-increasing monthly bills.

More than 40 million pay-TV customer homes have cut the cord over the last decade, according to industry data. Many have switched to smaller streaming packages. YouTube TV also benefited by attracting disaffected customers from DirecTV, Charter Spectrum and Comcast. YouTube TV is now the nation’s third-largest TV channel distributor.