TV

Scripps announces $1bn share repurchase program

Scripps Networks Interactive president and CEO Kenneth Lowe says the move demonstrates "our faith in the financial strength of our lifestyle media businesses."
June 30, 2011

Scripps Networks Interactive’s board of directors have today authorized a US$1 billion share repurchase program.

The move will see the company buy back 6.4 millions of its Class A common shares for approximately $300 million, or $46.66 per share, from its controlling shareholder, The Edward W. Scripps Trust. The remaining $700 million has been set aside for buying back Class A common shares sold on the open market or through private transactions.

Announcing the news, Scripps Networks Interactive board chairman and president/CEO Kenneth Lowe said: “The decision to repurchase shares from the Scripps Trust and initiate a meaningful share repurchase program demonstrates our faith in the financial strength of our lifestyle media businesses and the company’s ability to generate strong free cash flow.

“It also reflects our commitment to create value for shareholders; provides us with ample resources to meet operating requirements; and gives us the financial flexibility we need to invest in the company’s long-term growth,” he added.

The Edward W. Scripps Trust will remain the company’s single largest shareholder, holding approximately 26% of the company’s Class A common shares after today’s news, and approximately 93% of its common voting shares.

The Knoxville, Tennessee-based company has under its umbrella the cable networks HGTV, DIY, The Food Network, The Cooking Channel, The Travel Channel and Great American Country.

About The Author
Barry Walsh is editor and content director for realscreen, and has served as editor of the publication since 2009. With a career in entertainment media that spans two decades, prior to realscreen, he held the associate editor post for now defunct sister publication Boards, which focused on the advertising and commercial production industries. Before Boards, he served as editor of Canadian Music Network, a weekly music industry trade, and as music editor for HMV.com. As content director, he also oversees the development of content for the brand's market-leading events, the Realscreen Summit and Realscreen West, as well as new content initiatives.

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