Scripps News

[Moderator1]

From the Pipeline:

October 16, 2007


Dear Colleague:

Seven years ago this month I became the CEO of The E. W. Scripps Company and I’ve written to you many times since then to discuss matters of great significance. Today’s note may be the most-important one I’ve ever written.

As the attached press release indicates, the board of directors has authorized management to pursue a plan to separate our company into two publicly traded entities, both of which will be headquartered in Cincinnati.

When all of the planned transitional activities are completed, which will likely be in the second quarter of next year, the two new companies will be:
A new company, named Scripps Networks Interactive, consisting of what are now the Scripps Networks and Interactive Media divisions. I will be the president and CEO of this organization.
The E. W. Scripps Company, consisting of the 17 daily Scripps newspapers, the 10 television stations and United Media. Rich Boehne, who now serves as the COO of the current parent company, will be the president and CEO of The E. W. Scripps Company.
One of the primary reasons to pursue this change is expressed in the release:
It’s our intention to create two publicly traded companies, each with a sharpened strategic focus that would foster continued growth, solid operating performance and a clear vision on how best to build on the specific strengths of our national and local media franchises.

But there’s more to it than that. The new company is an exciting portfolio that includes some of the most-envied brands in the television universe: HGTV, Food Network, DIY, Fine Living and GAC and their associated Web sites. By combining those businesses with our online comparison shopping services, Shopzilla and uSwitch, this new company is expected to project a higher growth profile than the current Scripps and have the needed flexibility to pursue expansion opportunities.

At The E. W. Scripps Company, management will be focused exclusively on our intensely local media businesses, putting them in a better position to expand their share in some of the country’s most attractive markets. Our track record of local media innovation and our enhanced focus on journalistic excellence and community service will produce noticeable benefits for our readers, viewers and advertisers. The E. W. Scripps Company will be better able to assert itself as the industry leader and pioneer in local media that it is.

While this is an important milestone, the weeks and months ahead should be business as usual for the vast majority of you. If anyone were to ask me what they could do to contribute to the success of the upcoming transition, my reply would be simply to keep doing what you’re doing – and do it as well as you always have.

This proposed separation is contingent upon a number of factors, including a favorable ruling from the IRS, regulatory reviews, approval by the holders of Common Voting shares of Scripps stock, and final approval by the board of directors. Meanwhile, we’ll keep you apprised of developments as we work on this transition in the coming months.

We’ll answer your questions along the way, and I’ve started the ball rolling by attaching a Q&A to address some questions that I suspect you’re already asking. If you have more questions at any time, send them to me at [email protected] <mailto:[email protected]> .

Rich likes to say that “change presents opportunity,” and that couldn’t be illustrated any better than in today’s announcement. Change is definitely coming to this company, and in that change we have the opportunity to build on one of the finest traditions in the media industry. I’d like to thank each of you for the commitment you’ve made to making Scripps the outstanding company that it is, and I look forward to working with you to create two new companies that will continue to set high standards for the Scripps tradition of excellence.

Warmest Regards,

Ken Lowe

 

[Chi City 81]

I can't see this ending well for the newspapers.

 

[slappy4428]

PS: The people of Cincinnati and soon to be Albuquerque are still screwed as they were in Birmingham, as we whittle away the core product to virtually nothing more than the bare minimum than is legally required.

 

[The Last Boy Scout]

Wasn't Birmingham given barely a week's notice of closing? Harsh.

 

[steveu]

I think Denver will be well served by the Rocky... I can't see that paper going anywhere, even though it's in a JOA.

That said, those three cities definitely deserve to be mentioned in this thread.

 

[wickedwritah]

Wasn't Birmingham given barely a week's notice of closing? Harsh.

Same day.

 

[slappy4428]

Wasn't Birmingham given barely a week's notice of closing? Harsh.

If by barely you mean the day before, yes.

 

[Beach_Bum]

Birmingham was given less than 24 hours.
The suits came in after press run on a Thursday with the message that Friday's paper would be the last.
The staff hurriedly put together a last paper Friday, a retrospective issue on the newspaper's history, they sent the last pages, had a short farewell party and were escorted out of the building by security.
There were people who were on vacation who, I think, never even got all their stuff back.

 

[slappy4428]

Birmingham was given less than 24 hours.
The suits came in after press run on a Thursday with the message that Friday's paper would be the last.
The staff hurriedly put together a last paper Friday, a retrospective issue on the newspaper's history, they sent the last pages, had a short farewell party and were escorted out of the building by security.
There were people who were on vacation who, I think, never even got all their stuff back.

And as you look at the building now, the first part to be torn down is the loading dock and the Post-Herald newsroom. For if you look in the gaping hole, you can see right into Becky Gallagher's office, where little work got done, and into the sports department, where...

 

[BigRed]

Birmingham was given less than 24 hours.
The suits came in after press run on a Thursday with the message that Friday's paper would be the last.
The staff hurriedly put together a last paper Friday, a retrospective issue on the newspaper's history, they sent the last pages, had a short farewell party and were escorted out of the building by security.
There were people who were on vacation who, I think, never even got all their stuff back.

And as you look at the building now, the first part to be torn down is the loading dock and the Post-Herald newsroom. For if you look in the gaping hole, you can see right into Becky Gallagher's office, where little work got done, and into the sports department, where...

Sub in zero for little and you'd be right on the money.

 

[Dan Rydell]

Did you read it as I read it?

As in: "We'll be pouring ****loads of money into the interactive side, but you people on the newspaper side had better watch your backs."

 

[The Last Boy Scout]

Wow. Apparently worse than I remembered.

 

[vanbrimmer]

I'm no Nostradamus, but this reads to me like a company separating the division they want to keep -- TV and interactive -- from a division they want to put on the block -- newspapers. Too bad. As a graduate of the Scripps School of Journalism, I've always had a lot of respect for Scripps papers. The next question is, Who gobbles them up? Will the properties be bought piecemail or will a company like McClatchy, Gannett or New York Times buy them as a whole?

 

[wickedwritah]

There are some really good papers among the Scripps group, Naples and the Rocky being at the top of the heap.

 

[MU_was_not_so_hard]

Did you read it as I read it?

As in: "We'll be pouring ****loads of money into the interactive side, but you people on the newspaper side had better watch your backs."

Exactly what I was thinking.

I'm by no means a media expert, but I did work full-time for one scripps paper and interned at another. While working full-time, we got our regular scripps magazine delivered to us at work.
Each issue was essentially a slurp job for all the TV stuff scripps was involved in. IIRC, one of the issues had nothing re: any of it's papers except a section on the back on people moving in and out of the company (and that part had to do with the Rocky Mountain News).

It was easy to see where things were going.

 

[MileHigh]

I'm no Nostradamus, but this reads to me like a company separating the division they want to keep -- TV and interactive -- from a division they want to put on the block -- newspapers. Too bad. As a graduate of the Scripps School of Journalism, I've always had a lot of respect for Scripps papers. The next question is, Who gobbles them up? Will the properties be bought piecemail or will a company like McClatchy, Gannett or New York Times buy them as a whole?

TV stations and newspapers are under one umbrella. Cable TV and Internet is under another.

As for who gobbles it up ... who has any money to do it to invest in it?