2023-04-03 10:17:47 ET
Sinclair Broadcast Group ( NASDAQ: SBGI ) is reorganizing its holding company structure and will be organized as Sinclair Inc .
That new holding company will be the publicly traded parent of units that will include a Sinclair Broadcast Group (which will encapsulate Sinclair Television Group and the Diamond Sports regional sports network businesses) as well as Sinclair Ventures, which will roll up its private-equity and real estate assets as well as marketing tech company Compulse and the Tennis Channel.
Otherwise the structure won't result in changing directors or management, any impact to dividends, or any change to the company's SBGI ticker symbol.
Sinclair stock ( SBGI ) was down 4.1% Monday morning, among the laggards in Communication Services.
The change will be accomplished through a share exchange (subject to shareholder vote at a second-quarter special meeting) where each common share would be changed for respective shares of New Sinclair.
“We believe the new structure will provide greater flexibility for creating value within the company. The new structure simplifies the corporate structure and improves the transparency of financial disclosures on the value drivers of the company,” CEO/President Christopher Ripley said, noting some assets that were "buried" in the broadcast division will get greater visibility.
"In short, we believe a holding company structure can unlock unrecognized value and provide structural flexibility for the growth and monetization of our current and potential future media and non-media businesses," he added.
For further details see:
Sinclair Broadcast Group to become Sinclair Inc., rearrange units