About a month and a half ago I discussed my position in the Scripps/Journal transaction that ended up closing on Wednesday (4/1/15), as a Scripps shareholder I was about 90% exposed to the eventual TV/radio broadcasting company (keeping the Scripps name and SSP ticker) and 10% exposed to the new newspaper publishing company Journal Media Group (JMG). From the SSP side pre-transaction, I ended up about ~34% but that was heavily weighted towards SSP; I sold the new SSP position post-closing as it's trading for roughly fair value at 8.5-9.0x a blended '15/'16 EBITDA.
In contrast and classic small spinoff fashion, Journal Media Group was sold off indiscriminately yesterday - down over 10% on the day despite trading extremely cheaply based on EV/EBITDA and free cash flow metrics. To recap, Journal Media Group is a combination of the Milwaukee Journal Sentinel (formerly with Journal Communications) and Scripps' dozen or so smaller regional/community papers.
Unlike other publishing spinoffs (TPUB & TIME), Scripps was kind enough to leave JMG with no debt, no pension liability and roughly $10MM in cash. Only AH Belo is in a similar position among the remaining pure play newspaper companies:
[Another similar deal to take a close look at is Gannett's upcoming broadcast & digital/publishing split]
Disclosure: I own shares of JMG