Shares of local TV station owners, including E.W. Scripps, Gray Television, and Sinclair, have taken a hit after their national rivals entered into a sports-streaming agreement.
Decline in Stock Prices
Scripps’ stock fell significantly by more than 21%, reaching $5.86 during morning trading. Over the past 12 months, the stock has experienced a decline of around 61%.
Similarly, Gray TV stock slipped more than 11% to $7.81, while shares of Sinclair fell almost 13% to $12.99.
National Rivals Form Alliance
This decline comes in the wake of an announcement that ESPN, Fox, and Warner Bros. Discovery are joining forces to create a sports-streaming service. This service will provide content from all major leagues.
According to a statement released by the companies following a report in The Wall Street Journal, the as-yet-unnamed service will be available directly to consumers who can stream the sports content offered by these organizations.
Market Reaction and Fox’s Quarterly Report
These market reactions also coincide with Fox’s recent quarterly report, which revealed a 20% decrease in advertising revenue compared to the previous year.
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