Scripps CEO Explains ‘Difficult Decisions’ In Company Memo

On Friday, September 27, The E.W. Scripps Co.‘s President/CEO, Adam Symson, shared “some difficult and painful news” about its Scripps News operation in an internal memo. Days later, it became known that President of News Kate O’Brian will exit the company at the end of 2024 — a move tied to the November 16 end of Scripps News’ 24/7 channel.

Then, there is the pending divestment of the Bounce TV digital multicast network superserving African American consumers. The decision comes some seven years after Scripps acquired it through its Katz Networks acquisition.

Now, in a move former News Initiative Audit Lead Dave Taylor calls one of “authenticity and transparency,” Symson on Tuesday went to LinkedIn to share why Scripps made these decisions in the context of a new strategic plan.

He directly addressed the “difficult decisions” which left many employees with questions about the future direction of The E.W. Scripps Co., which trades on the Nasdaq GlobalSelect exchange and saw its shares priced at just over $3 as of early Wednesday (10/16). In fact, “SSP” was up 18% from the Opening Bell — a sign that Symson’s memo got in the hands of investors who were pleased with his direction, and candor.

It had been since August 6 that Scripps shares climbed above the $3 mark, trading at a five-year low.

In the memo, Symson detailed how a three-year strategic plan, which commenced in 2024, “is rooted in improving our financial picture and positioning the company to grow.” He addressed the 2021 acquisition of ION, which Symson says “required us to borrow a significant amount of money.”

Was buying ION an incorrect move? He says, “It was the right decision at the time — allowing us to transform the company by building a powerful national networks business in a way that diversified our sources of revenue. However, that debt, coupled with a national advertising recession, has created financial strain and put pressure on our stock price.”

This brings Symson to Task No. 1. “Improving the company’s financial performance and reducing our debt are the top priorities at the moment so that we can continue to execute our mission on firm financial footing,” he said. “This is among the reasons we announced our intent to sell Bounce. And without a viable path to significant revenue growth, it’s also why I made the difficult decision to wind down Scripps News’ over-the-air programming. Decisions like these are difficult to make and painful for the impacted employees as well as those who continue on with Scripps. Still, I believe they are the right things to do for the long-term health of the company.”

Four objectives comprise Scripps’ three-year strategic plan.

Objective No.1: Aggressively improve the company’s financial performance

“Achieving this objective is required ahead of any other ambitions we may have,” Symson notes. Here, “financial performance” is shorthand for growing revenue and maintaining appropriate expenses while Scripps prioritizes debt repayments, he explains, noting the company is intentional about using the word “aggressively” when describing its desire to tackle its debt. “It signals our intent to do this proactively,” he said, noting that this objective is also the reason for the creation of a Transformation Office led by Laura Tomlin, which he explained is designed to identify new areas for process improvement, efficiency and revenue growth, including through technology.

Objective No. 2: Maximize the value of our distribution assets

“As audiences continue to fragment, each of these platforms is in its own life stage that calls for unique strategies to maximize its value to Scripps,” Symson said. “Our distribution team works closely with local, networks and Scripps Sports leaders to ensure we maintain our reach, grow our revenue opportunity and mitigate risk.”

Could this lead to tougher retransmission consent negotiation with MVPDs and vMVPDs?

Meanwhile, development of a new data transmission business using ATSC 3.0 technology has future revenue promises.

Then, there is Scripps’ Tablo, which Symson says provides “significant new opportunity to serve as an advertising and data platform, not to mention a way to market all of our broadcast channels and FAST networks.”

Objective No. 3: Transform the business from having an indirect to a direct relationship with consumers

Symson writes, “Linear television’s ability to reach large swaths of consumers is one of our greatest assets. Yet it’s also abundantly clear that the advertising industry is moving toward advertising solutions with more direct connection to the audience – informed by data. That’s why we are setting ambitious goals to embrace that shift. You can already see this in action through the work we’ve done to grow our connected TV revenue in the last few years. This also is the reason we’re bullish on Tablo as a data platform. And it’s why we’ll be putting a lot of attention on the greater use of data and technology to enhance the value of our advertising inventory on cable, satellite and over the air.”

Objective No. 4: Cultivate a high-performing culture

Symson concluded, “We can’t achieve the above objectives in this plan without you. We know a company culture that supports performance starts with strategic clarity and requires continued candor. And it’s grounded in our values: courage, compassion, curiosity and community. The purpose of this email is to make clear where we are going as a company, how we’re making decisions, what you should expect of Scripps and how you can help in driving this mission-focused company forward.”

He added that “over the next several months” Scripps employees will learn more about the plan and what it means to them and their respective teams. “You’ll see how we prioritize projects and initiatives that will achieve this plan,” Symson said. “My commitment to you is to communicate the company’s decisions and how they align with our strategic plan.”