FILE PHOTO: A boardroom is seen in an office building in Manhattan, New York City, New York, U.S., May 24, 2021. REUTERS/Andrew Kelly/File Photo
(Reuters) -Sinclair said on Monday its board has authorized a strategic review of the company's broadcast business and it is considering a separation of its Ventures portfolio, sending its shares up 15% in extended trading.
The review comes as media companies are exploring options for their cable TV businesses, as audiences rapidly abandon linear TV in favor of streaming platforms.
Sinclair owns, operates and provides services to 178 television stations in 81 markets.
The Ventures portfolio is comprised of Sinclair's private equity and real-estate assets, a cable network that includes coverage of most of tennis' top tournaments called the Tennis Channel, as well as its ad tech unit, Digital Remedy.
"We expect separating Ventures will crystallize significant value that the market has overlooked within our current structure, giving us even more flexibility to drive our broadcast strategy forward," CEO Chris Ripley said.
The Ventures business made nearly $11 million in minority investments during the second quarter.
The company cautioned that the strategic review may not result in any transaction or change.
For the quarter ended June 30, Sinclair's total revenues decreased 5% to $784 million.
(Reporting by Jaspreet Singh in Bengaluru and Juby Babu in Mexico City; Editing by Alan Barona)
