Journal Communications Inc. and E.W. Scripps Co. shareholders simultaneously voted Wednesday morning to approve the merger and spinoff of the two media companies.
Milwaukee-based Journal Communications and Cincinnati-based Scripps will merge their broadcast operations under The E.W. Scripps Co. name, to be based in Cincinnati. The Scripps family shareholders will continue to have voting control. The company will have about 4,000 employees and an annual revenue of more than $800 million.
The deal means WTMJ-Channel 4 and radio stations AM-620-WTMJ and FM-94.5-WLWK will become part of Scripps.
The companies’ newspaper operations will be combined as Journal Media Group, with a Milwaukee headquarters. It will include the Milwaukee Journal Sentinel and the Scripps’ daily newspapers, community publications and related digital products. The Journal Media Group will have about 3,600 employees and will operate in 14 markets. It has expected annual revenue of more than $500 million.
Having now achieved all shareholder-level and regulatory approvals, the transactions are expected to close early in the second quarter. The exact date is expected to be announced Friday.
On the New York Stock Exchange, Scripps will continue to trade under the symbol SSP, while Journal Media Group will trade under JMG.
Scripps shareholders will receive a $60 million special dividend as part of the deal.
Scripps reported its fourth quarter earnings last week, which missed analysts’ estimates on sluggish newspaper earnings. Journal Communications is scheduled to report its fourth quarter and full-year 2014 results tomorrow.
Both Scripps and Journal stock hit new 52-week highs Tuesday. Several top executives for Journal Communications, including chairman and CEO Steven Smith, sold thousands of shares on Tuesday.
