The E. W. Scripps Co.'s board of directors has unanimously approved a plan to separate Scripps into two publicly traded companies, one focused on "creating national lifestyle media brands" and the other on "building market-leading local media franchises," including its television stations.

The action follows that of Belo Corp., which announced on Oct. 1 that it plans to split into two companies, one comprising its TV stations and the other its newspaper properties.

The two companies that would exist after the Scripps separation would be:

• Scripps Networks Interactive, which would consist of the national lifestyle media brands and associated enterprises that operate collectively as Scripps Networks, including cable television's HGTV, Food Network, DIY Network, the Fine Living Television Network and Great American Country and their related Internet businesses. The new company also would include online comparison shopping services Shopzilla and uSwitch and their associated Web sites. These businesses have combined annual revenue of approximately $1.4 billion and 2,100 employees.
  
  
• The E. W. Scripps Co., which would include daily and community newspapers in 17 U.S. markets; 10 television stations—-six ABC affiliates, three NBC affiliates and one independent station; the character licensing and feature syndication businesses operated by United Media; and Scripps Media Center in Washington D.C, which includes the Scripps Howard News Service. These businesses have combined annual revenue of about $1.1 billion and employ about 7,100 people.

Following the separation, the company said it anticipates that Kenneth W. Lowe, president and chief executive officer of Scripps, will become president and chief executive officer of Scripps Networks Interactive. At The E. W. Scripps Co., Richard A. Boehne, currently executive vice president and chief operating officer, is expected to become president and chief executive officer.

Corporate headquarters for both companies would be in Cincinnati. The company said that “changes are anticipated at corporate headquarters to accommodate the creation of two separate publicly traded companies.”

It went on to say that “the proposed separation is not expected to have a material effect on the day-to-day lives of employees working at the company's television networks, newspapers, broadcast television stations, Internet search businesses, licensing and syndication subsidiary and other related businesses.”

"This is an important and logical next step for our shareholders, employees and all other stakeholders who have a direct interest in the success of our media businesses," said Lowe. "It's our intention to create two publicly traded companies, each with a sharpened strategic focus that would foster continued growth, solid operating performance and a clear vision on how best to build on the specific strengths of our national and local media franchises."

"The new company that would be created by the transaction—Scripps Networks Interactive—would be anchored by two of America's most-watched and most successful cable television networks—HGTV and Food Network—and would benefit from the rapidly growing popularity of its newer lifestyle brands, DIY Network, Fine Living and Great American Country. HGTV and Food Network are each now available in more than 95 million U.S. television households and have proven themselves many times over to be valuable and efficient platforms for advertisers who want to reach engaged and motivated audiences. Further, our newer brands are each now available in about 50 million U.S. households and are having considerable success building loyal audiences of passionate viewers of their own."

"On the Internet, Scripps Networks operates Web sites that are undisputed leaders in the lifestyle categories that we've popularized on TV," Lowe said. "FoodNetwork.com consistently leads its content category and HGTV.com is the leading, purely home and garden content site on the Internet. Our growing portfolio of related interactive initiatives at Scripps Networks, along with our Internet search businesses - Shopzilla and uSwitch - would add to the new company's overall potential for long-term growth.

"At The E. W. Scripps Co., shareholders would benefit from the strength of our established, high-profile local media brands," Lowe said. "These are businesses built on the company's 130-year tradition of journalistic excellence, community service and local media innovation. The company's portfolio of valuable media assets would include established print, online and broadcast franchises in some of the country's most attractive and fastest growing markets, including West Palm Beach, The Treasure Coast, Tampa and Naples, all in Florida; East Tennessee's Knoxville; California's Ventura County and Phoenix in the Sun Belt.

"Scripps newspapers, including the Pulitzer-prize winning Rocky Mountain News in Denver, reach more than 1 million readers every day—both in print and online — delivering up-to-the-minute news and information," Lowe said. "Likewise, our network-affiliated television stations are viewable in markets representing 10% of the U.S. population. The Scripps Television Station Group has a solid reputation for journalistic excellence and community service and has garnered more than its share of Emmy, Peabody and Murrow awards—the broadcast industry's top honors.

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