Official trading began yesterday in the separate stocks of E.W. Scripps Company (TV/newspapers) and Scripps Networks Interactive (cable networks/interactive sites). E.W. Scripps’ stock moved down from its previous “when issued” closing price, while SNI moved up.
Ken Lowe was at the NYSE to ring the opening bell yesterday, not in his former post as CEO of E.W. Scripps, but as Chairman, President and CEO of the new Scripps Networks Interactive. Rich Boehne is now President and CEO of The E. W. Scripps Company.
"This is a tremendously exciting day for all of us at Scripps Networks Interactive following not only months of planning for this day, but the culmination of a vision we had 14 years ago of creating a television network devoted to the home," Lowe said. "HGTV was born, and building on its success, we’ve assembled a valuable portfolio of lifestyle media businesses, including Food Network, and interactive services that have made an indelible impression on media consumers everywhere. We begin our exciting journey as a new, independent company focused purely on growing these businesses," he added.
Just as Lowe hitched his wagon to the spin-off, investors were much more enthusiastic about SNI than E.W. Scripps. SNI rose $1.40, or 3.7% from its final "when issued" price to close at $39.75. E.W. Scripps was down 18 cents, or 5.6% from its final "when issued" price, to close at $3.01.