Deep Dive: Ben Claremon Discusses E.W. Scripps Stock
It was our pleasure to talk with Ben, a first-time guest on the show, about a company he thinks is a hidden gem called E.W. Scripps. Listen to the full interview to hear his analysis (check out more of his stuff on Twitter). Here are the questions we asked Ben:
(Ben also interviewed the CEO of the company on his podcast: link here).
Can you explain Scripps's business model and how it has evolved in recent years? What is the history of this business?
What assets do they own today?
What did they own in audio? Why did they sell? Do you think it was the right decision?
How much does the business rely on political advertising?
Why would an advertiser come to them instead of other mediums (Facebook, Google, YouTube, etc.)?
Thoughts on management
How are they adapting to new modes of consumption? Mobile, computer, ctv, etc.?
How is Scripps positioned in a world where people continue to cut the cord?
The company levered up to acquire a company called Ion in 2020. What was the rationale for taking a levered bet during such uncertain times?
What do you think of the preferred shares sale to Berkshire?
What is the path to paying off/managing the $3 billion in long-term debt on the balance sheet?
What do you think SSP is worth?
How could this investment go wrong? What are the biggest risks?
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Disclosure: The author and podcast guests are not your financial advisors. Ryan Henderson and Brett Schafer are general partners and portfolio managers at Arch Capital. Clients of Arch Capital may hold securities discussed on this show.