Steve Cohen Boosts Stake in Beaten-Down TV Stock by 1,100% as Political Ads, Sports Rights Fuel Turnaround

Steven Cohen's Point72 Asset Management boosted its stake in E.W. Scripps by 1,104.7% or 3.84 million shares to own a total of 4.19 million shares of the US broadcaster, as a surge in political advertising and the company's growing sports business offer potential catalysts for a turnaround.

The 5th October filing with the US Securities and Exchange Commission showed that Point72 now owns 5.2% of the company.

The timing puts Cohen's enlarged Scripps position against a potentially important earnings cycle for the broadcaster. Scripps has been positioning itself to benefit from the enormous advertising opportunity surrounding the 2026 US midterm elections.

The company's Q2 results showed $28 million in political advertising revenue, a record for the quarter and sharply above the $2.6 million generated in the same period a year earlier.

Scripps subsequently raised its expectation for full-year 2026 local political advertising revenue to $225 million to $250 million. That is particularly significant because political advertising tends to be concentrated in local television markets, where Scripps operates more than 60 stations across 40-plus markets.

The company generated over $200 million in political advertising during the 2022 midterms and has identified Arizona, Colorado, Michigan, Nevada, Ohio, and Wisconsin as particularly important markets heading into this year's elections.

Note that AdImpact data reported in September showed that political advertising for the 2025-26 election cycle had already surpassed $6 billion, ahead of the pace seen during previous midterm campaigns.

Sports Are Another Piece of the Turnaround

Scripps is also trying to turn live sports into a recurring advertising and audience catalyst rather than relying solely on traditional television programming.

Its Scripps Sports division has secured local broadcast relationships with professional teams, including the Florida Panthers and Vegas Golden Knights, while its ION network has continued expanding its women's sports offering.

Scripps said its WNBA Friday Night Spotlight increased the league's audience by 30% and doubled the company's revenue from the 2023 to 2024 seasons. The company subsequently renewed its WNBA agreement.

The strategy has expanded further this year. Scripps announced a multi-year distribution agreement with the Detroit Pistons, its first NBA team partnership, while local sports agreements have also helped support core advertising performance.

In Q1, Scripps said local-media core advertising revenue rose 7% on an adjusted combined basis, helped by agreements with four NHL teams, including the Tampa Bay Lightning. The Winter Olympics and Super Bowl also contributed.

Scripps Is Also Focusing on Cutting Costs

Cohen's investment move might not be solely about a temporary political advertising windfall for the company.

Scripps launched a transformation programme in February targeting $125 million to $150 million of annualised enterprise EBITDA growth by 2028 through cost reductions and revenue initiatives, including greater use of AI and automation.

By the end of 2026, the company expects to have implemented approximately $100 million in annual run-rate savings.

Scripps has also been selling selected stations and using the proceeds to bolster its balance sheet. The sales of WFTX in Fort Myers and WRTV in Indianapolis generated a combined $123 million, with proceeds earmarked for debt paydown and the potential reacquisition of 23 ION-affiliated stations.

Cohen's E.W. Scripps Bet Comes With Considerable Risk

While there are multiple potential catalyst paths for Scripps, the company remains far from a straightforward recovery story.

Revenue in Q2 fell to $490.4 million, while the loss from operations before taxes swelled to $1.2 billion from a loss of $25.11 million a year earlier, amid a $11.61-per-share non-cash goodwill and intangible-asset impairment charge. Scripps Networks revenue also fell 16% year-over-year.

That leaves Cohen's enlarged position looking less like a bet on Scripps' existing earnings power and more like a wager on what the broadcaster could look like after its transformation.

In short, political advertising provides a near-term revenue catalyst, while sports rights are intended to strengthen audiences and advertising beyond election years. Simultaneously, cost reductions and asset sales are also aimed at improving profitability and reducing leverage.