CINCINNATI, Oct. 7, 2015 /PRNewswire/ -- The E.W.
Scripps Company (NYSE: SSP) expects the spinoff and merger of its
newspaper operations with those of Journal Communications to remain
tax free for Scripps and its shareholders if Journal Media Group
(NYSE: JMG) is acquired by Gannett Company (NYSE: GCI). Gannett
announced plans for the acquisition today.
On April 1, Scripps and Journal
Communications simultaneously spun off and merged their newspaper
operations to form Journal Media Group in a transaction that was
tax free for Scripps and its shareholders. At the time of this
deal, Scripps and Journal Communications entered into a Tax Matters
Agreement to address Scripps' and Journal Media Group's rights and
obligations with respect to a number of matters, including any sale
of Journal Media Group before the second anniversary of the closing
of the deal.
Under that agreement, Journal Media Group is required to provide
Scripps with an unqualified opinion of tax counsel confirming that
the tax-free status of the spin-off of Scripps newspapers will be
preserved in the event of a sale of Journal Media Group. Scripps
has received this tax opinion, which concludes that the sale of
Journal Media Group will not result in the prior Scripps spinoff
becoming taxable to Scripps or its shareholders.
About Scripps
The E.W. Scripps Company serves audiences and businesses through a
growing portfolio of television, radio and digital media brands.
Scripps is one of the nation's largest independent TV station
owners, with 33 television stations in 24 markets and a reach of
nearly one in five U.S. households. It also owns 34 radio stations
in eight markets. Scripps also runs an expanding collection of
local and national digital journalism and information businesses,
including podcast industry leader Midroll Media, over-the-top video
news service Newsy and weather app developer WeatherSphere. Scripps
also produces television shows including The List and The Now, runs
an award-winning investigative reporting newsroom in Washington, D.C., and serves as the long-time
steward of the nation's largest, most successful and
longest-running educational program, the Scripps National Spelling
Bee. Founded in 1878, Scripps has held for decades to the motto,
"Give light and the people will find their own way."
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SOURCE The E.W. Scripps Company