Why E.W. Scripps Stock Skyrocketed Today

Shares of E.W. Scripps (NASDAQ: SSP) have skyrocketed today, up by 15% as of 1:13 p.m. EDT, after the company announced it was acquiring ION Media for $2.65 billion. Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) is helping to fund the deal.

Scripps is scooping up the independent television network and plans to combine it with its existing Katz Networks and Newsy businesses. The media company estimates that the acquisition will create $500 million in synergies over the next six years, predominantly derived from carriage fee savings related to Katz Networks.

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