Stock Alert: E.W. Scripps Jumps 17% On ION Media Acquisition Deal

(RTTNews) - Shares of The E.W. Scripps Company (SSP) are up more than 17% Thursday morning after the broadcasting company said it agreed to buy national broadcast network ION Media for $2.65 billion.

Berkshire Hathaway plans to make $600 million preferred equity investment in E.W. Scripps to finance the acquisition of ION. Berkshire Hathaway will also get a warrant to purchase up to 23.1 million Class A shares, at $13 per share.

E.W. Scripps plans to combine ION Media, which reaches more than 100 million homes through over-the-air and pay TV platforms, with Scripps' Katz networks and Newsy to create a full-scale national television networks business.

This highly accretive acquisition will yield $500 million in synergies, most of which are contractually based, over the next six years, the company said.

E.W. Scripps is currently trading at $12.35. It has traded in the range of $5.36- $16.93 in the last one year.