The E.W. Scripps Co. said it was shutting down its Scripps News over-the-air channel effective November 15 and eliminating at least 200 jobs.
When the move was announced, Scripps stock jumped and was up 15% in midday trading Friday.
Burdened by debt since its acquisition of Ion Media, Scripps stock is down 72% this year from a 52-week high of $9.25 a share in January.
Kate O’Brian, president of news at Scripps, said she would be leaving the company.
“Over the last two years, Scripps News’ live anchored coverage and documentary programming have grown its linear television audience, but the prospects for the necessary revenue growth haven’t materialized, despite our sales teams’ efforts,” Scripps CEO Adam Symson said in a memo to employees. “Scripps News’ current financial position is what has led me to the decision to scale back our approach to 24-hour news and over-the-air coverage.“
“Amidst an already difficult linear television advertising marketplace, many brands and agencies have decided that advertising around national news is just too risky for them given the polarized nature of this country, no matter the accolades and credentials a news organization like Scripps receives for its objectivity,” Symson said. “I vehemently disagree, but it is hurting Scripps News, along with every other national linear and digital news outlet.”
Symson said Scripps News will remain on streaming and digital platforms with weekday live coverage from a Washington, D.C.-based core reporting team. He said about 50 Scripps News staff members would remain to report for its local stations.
“I also want to emphasize that the advertising issues Scripps News has faced reflect the national marketplace,“ Symson said. ”Locally, there is advertising support for our local news and our stations’ ability to connect local businesses with our audiences. It remains our responsibility to serve local communities and connect them to the greater world through Scripps News’ national and international reporting.”
In her memo to staff, O’Brian called the shutdown “a business decision” and not reflection on the quality of its work.
“The tough reality is that despite doing remarkable and award-winning journalism, building our OTA audience steadily since we launched, and doubling our weekly OTA revenue in the last year, the national ad market simply did not sustain over-the-air Scripps News as a viable business,” she said.
“The world needs more objective journalism and dedicated journalists like all of you,” O’Brian added. “Indeed, we still have a most consequential election to cover for our audience that demands fact-based and thoughtful coverage. We owe it to our loyal audiences on every platform to continue to deliver the highest quality news and information right up to November 15.”
