Effective today, E.W. Scripps Company shareholders will have one-third as many shares as they had yesterday, but they should be worth three times as much. The 1-for-3 reverse split was approved by the board of directors in May, but had to wait for shareholder approval at yesterday’s annual meeting. The reverse split for the TV/newspaper company does not have any impact on the shares of Scripps Networks Interactive (cable networks/interactive), which was spun off the beginning of this month.
E.W. Scripps now has approximately 54 million shares outstanding, one-third of the 163 million outstanding yesterday. No fractional shares will be issued. Any fractional holdings that will result from the reverse share split will be settled with a cash payment.
Since the split, Scripps’ stock has traded in a range of about $3.00-3.40, so the reverse split should move it back out of penny stock territory, which is anything below five bucks.