Based on comments made by EW Scripps Co. executives at the Goldman Sachs Communacopia conference, the diversified media company could jettison newspapers in favor of Internet assets.
Scripps CEO Ken Lowe and CFO Joseph NeCastro told conference attendees the company will continue to acquire Internet companies in the $25 million to $100 million range to bolster the portals associated with its cable networks such as Food Network and HGTV. Driving Scripps' interest in online assets is the revenue growth potential. But rather than simply using it to offset trouble in the newspaper business, the company could sell the business, noted paidContent, which wrote:
While it has no immediate plans to do so, it wouldn't be inconceivable for the company to jettison its newspaper business at some point going forward. The Scripps family, which still owns a significant stake in the company, is fairly hands-off, and likely wouldn't pose the same kind of obstacle as the Bancrofts did at Dow Jones.
—Matthew Wurtzel
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Tags: web 2.0, media, deals, m&a, mergers
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