Scripps Deploys 'Poison Pill' Defense Against Hostile Takeover Bid

E.W. Scripps Co. (SSP) just activated a shareholder rights plan—basically a corporate defense move—after getting hit with an unsolicited acquisition proposal. Here’s what went down:

The Defense Tactic: The board approved a one-year limited shareholder rights plan effective immediately. Think of it as a “poison pill”—a classic anti-takeover strategy that makes the deal less attractive to aggressive buyers.

How It Works:

• Each shareholder gets one rights certificate per share (distributed Dec. 8, 2025)
• Rights sit dormant initially and trade alongside regular shares
• Trigger point: If any person/group snags 10%+ ownership of Class A shares, the rights kick in
• Once triggered, shareholders can buy additional Class A shares at 50% discount to current market price—flooding the market with cheap shares and diluting the acquirer’s stake
• Board can redeem rights for just $0.001 per right anytime

Why This Matters: This move gives Scripps’ board breathing room to shop around for better offers or explore other strategic options. The discounted share purchase right essentially punishes hostile bidders without hurting friendly deal-makers (who can negotiate a redemption).

Bottom Line: Standard playbook when you don’t want to be acquired on someone else’s terms. Now the real negotiation games begin.