Scripps Networks seemed to dash investor hopes that it might be sold when the owner of HGTV and the Food Network announced today a plan to buy back $1 billion of its stock — including $300 million from its controlling shareholder, The Edward W. Scripps Trust. Speculation about a sale grew on June 17 when the trust asked a probate court for a ruling that would have made it easier for family members to sell their shares. It would have dissolved the trust on the death of Edward W. Scripps’ last grandchild, who’s 93. Scripps’ stock price rose 5.9%, the biggest single-day jump in two years. After the company announced its stock repurchase, the share price fell 19 cents to $48.88. Scripps Networks CEO Ken Lowe says the decision “demonstrates our faith in the financial strength of our lifestyle media businesses and the company’s ability to generate strong free cash flow.”
By DAVID LIEBERMAN, Financial Editor | Thursday June 30, 2011 @ 6:12pm EDTTags: Food Network, HGTV, Scripps Networks, Scripps Networks Kenneth Lowe
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This article was printed from http://www.deadline.com/2011/06/scripps-networks-stock-buyback-disappoints-investors-hoping-for-a-sale/