Scripps Deploys Shareholder Rights Plan in Response to Unsolicited Bid

The E.W. Scripps Co. (SSP) board has moved quickly to implement a time-limited shareholder rights plan following an unexpected acquisition proposal. The defensive measure took effect immediately and carries a one-year duration, establishing a framework designed to shield investors from aggressive acquisition tactics while affording directors adequate time to evaluate the offer alongside other potential strategic options.

How the Rights Plan Works

Under this newly approved structure, Scripps will distribute Class A common share rights and common voting share rights via dividend to all shareholders of record as of December 8, 2025. The distribution includes one right per existing share. Initially, these rights remain non-exercisable and will move in tandem with their corresponding shares.

The triggering mechanism activates when any person or affiliated group accumulates beneficial ownership exceeding 10% of outstanding Class A common shares. Upon this threshold breach, Class A common share right holders gain the ability to purchase additional Scripps Class A shares at a significant discount—specifically 50% below the prevailing market price at exercise time.

Protecting Shareholder Interests

The board structured this rights plan with multiple safeguards. The mechanism ensures that all shareholders receive equitable treatment and full value consideration in connection with any acquisition attempt. Additionally, directors retain redemption authority, with the ability to cancel rights at $0.001 per right, providing flexibility should circumstances warrant it.

This defensive posture reflects the board’s commitment to evaluating acquisition proposals on terms that genuinely benefit shareholders rather than enabling potentially coercive tactics that might pressure investors into accepting unfavorable valuations.