TV station owner Sinclair plans to branch into nonbroadcast business through billion-dollar private-equity fund

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It plans to pursue acquisitions of companies that stand to benefit over the next decades from trends such as the aging of the population, the expanding decarbonization of the economy, the increase …

Chris Ripley, president and CEO of Sinclair Inc. is pictured in November 2020. He said in a recent interview that instead of buying more television stations, the company is shifting its investment strategy to acquire growing, nonbroadcast businesses. Media company Sinclair may be best known for its empire of television stations and local news programming across the United States, its founders’ conservative bent and its recent failed foray into regional sports network ownership.

“Our core business and our legacy might be in media and broadcasting, but at the end of the day we’re looking to make Sinclair a success in any industry that it’s in,” Ripley said. “If there are better investment opportunities in other industries, then we should pursue those rather than just blindly saying we’re a broadcaster, and this is all we’re going to do.”

“The stock is dirt cheap, trading at less than earnings,” said the report by Dave Kovaleski, who covers financial stocks for Motley Fool. “It has had a rough past few years, dealing with cord-cutting and a shifting television landscape.” Under the theme of aging population, the company plans to take a close look at sectors such as nursing homes, retirement communities, and assisted living or aging-at-home services.

It will consider businesses as well that benefit from decarbonization, “another trend that we’re very certain will be strong and enduring for decades to come,” in areas such as geothermal, alternate energy plans or recycling, Ripley said. On June 1, Sinclair Inc. became a public holding company of Sinclair Broadcast Group, which houses subsidiaries Sinclair Television Group and Diamond. Diamond, which airs games for 14 Major League Baseball teams,The split also created the subsidiary Sinclair Ventures to house a $1.3 billion investment portfolio made up of cash and minority investments in private equity, real estate and other direct investments.

An analyst for J.P. Morgan noted in an August report that Sinclair’s television stations and cable networks face challenges because of the risk of recession and the potential for cord-cutting to hurt distribution revenue.

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