The merger will increase “operational efficiencies” by reducing ION’s programming costs, cutting Scripps carriage costs, and eliminating duplicative costs for both broadcasters.
According to Scripps, “ION Media has the fifth-largest average primetime audience among all U.S. cable-carried networks and reaches more than 100 million homes through over-the-air and pay-TV platforms.”
Mergers and acquisitions in a changing landscape
In recent years, the U.S. broadcast media sector has experienced profound changes. With content streaming from online platforms, the advertising revenue has shifted to the internet. There have also been three important purchases/ mergers.
In the past year, AT&T, Comcast, and Disney have spent $215 billion on acquisitions.
- AT&T purchased Time Warner for $104 billion
- Disney purchased a large stake in 21st Century Fox for $71 billion
- Comcast bought European broadcaster Sky for $40 billion
The US broadcasters are fighting for market share and trying to compete with three tech giants who have morphed into media companies. Netflix, Amazon, and Apple have all launched streaming platforms. Everyone but Disney is struggling to create and provide the public’s need for constant content.
