SCRIPPS BOARD APPROVES PROPOSED SPLIT

The E. W. Scripps Co.'s board of directors today approved management's plan to separate Scripps into two public companies, effective July 1.

The board's action on Thursday follows its decision in October authorizing management to pursue a separation of Scripps into two companies, one focused on national and global lifestyle media and interactive services and the other on “market-leading local media franchises.”

The separation will take the form of a tax-free distribution of stock to Scripps shareholders in a new company called Scripps Networks Interactive Inc. Post-transaction, Scripps shareholders will continue to own stock in both companies.

The E. W. Scripps Co., post transaction, will continue to operate its local newspapers, broadcast television stations, and licensing and syndication businesses. Scripps operates daily newspapers in 15 markets, 10 broadcast television stations and United Media.

Scripps Networks Interactive will include the businesses that currently comprise the company's Scripps Networks and Interactive Media divisions. Scripps Networks includes the company's five national lifestyle television networks and related Internet enterprises. The Interactive Media division includes the company's online comparison shopping subsidiaries.  

Completion of the transaction is pending approval by the Securities and Exchange Commission.

If approved, all shareholders of record (as of June 16) will receive one share of Scripps Networks Interactive stock on July 1 for each share of stock they own in The E. W. Scripps Co.

The Scripps board of directors on Thursday also approved a one-for-three reverse stock split for shares in The E. W. Scripps Co. that will take affect on July 16 pending shareholder approval.