Business
Sinclair pursues a deal with Scripps to spark more TV station consolidation
Television station owner Sinclair Inc. has taken an equity stake in fellow broadcaster E.W. Scripps, signaling its intent to become a behemoth in the shrinking field.
Sinclair disclosed its interest in Scripps, which owns stations in Fresno, Bakersfield, Buffalo, N.Y., and Billings, Mont., in a Securities & Exchange Commission filing Monday. Baltimore-based Sinclair, known for its conservative political bent, said it has acquired about 8% of Scripps’ equity by buying some of its publicly traded shares.
Sinclair disclosed that it has had “constructive discussions with [Scripps] for several months regarding a potential combination of the two companies.”
No deal has been reached.
Cincinnati-based Scripps, in a statement, suggested that it wasn’t interested in a tie-up with Sinclair, saying the Scripps board and management instead were “focused on driving value for all of the company’s shareholders through the continued execution of its strategic plan.”
“The board and management are aligned on doing only what is in the best interest of all of the company’s shareholders as well as its employees and the many communities and audiences it serves across the United States,” Scripps said.
Sinclair appears to be putting pressure on Scripps by making the stock purchases and the public disclosure. Scripps stock jumped 40% to $4.28 at the market close on Monday. The company is valued at about $363 million.
Sinclair shares also got a bounce, gaining 5% and closing at $16.87. The company’s market value is $1.2 billion.
Television station owners are hoping that President Trump and his appointments to the Federal Communications Commission will lift the government-imposed cap on broadcast ownership. Currently, stations are restricted from owning outlets that reach more than 39% of the U.S. population.
Sinclair currently owns or operates 185 television stations in 85 markets, according to its website.
FCC Chairman Brendan Carr has signaled a willingness to undertake a massive deregulation. The anticipated push has prompted a flurry of deals among broadcasters, who have seen their advertisers scatter and audiences decline as more consumers get their news through social media.
Sinclair, in its filing, made a nod to the changing political winds in Washington.
“Recent industry consolidation and intensifying competition reinforce [Sinclair’s] view that further scale in the broadcast television industry is essential to address secular headwinds and compete effectively with larger-scale big-tech and big-media players, as well as major broadcast groups,” Sinclair wrote.
In September, Sinclair prodded the Walt Disney Co. to punish late night host Jimmy Kimmel after the host made comments about the alleged gunman who was later arrested and charged with the murder of conservative activist Charlie Kirk in Utah. Sinclair owns several ABC affiliate stations and dropped “Jimmy Kimmel Live!” for more than a week.
Sinclair demanded that Kimmel make a “meaningful personal donation” to Kirk’s political organization, Turning Point USA.
But Sinclair’s campaign crumbled after Disney’s brass returned Kimmel to his late night perch — without making concessions that Sinclair had demanded.
Critics have pointed to the alleged harms of TV station consolidation, including fewer on-the-ground workers and journalists reporting on the communities where the stations are based.
Sinclair’s filing contradicted such arguments, writing that “greater scale will also strengthen broadcasters’ ability to sustain their vital public service role in producing local news.”
The filing said consolidating Scripps could produce “more than $300 million in expected annual synergies.”
“The proposed combination would be structured to require no external financing as the combined company would maintain each company’s respective debt and preferred capital structures,” Sinclair wrote in the filing. “The transaction would avoid significant refinancing costs while meaningfully reducing leverage through the realization of synergies and lowering future refinancing risk.”
In its 2024 annual report, Sinclair said its dozens of stations produced “more than 2,400 hours of live news coverage per week across its station footprint, in addition to our various digital, social and audio platforms.”
Sinclair said in Monday’s filing that it was “committed to constructive engagement with [Scripps] toward reaching a definitive transaction agreement,” and Sinclair would like to consolidate its fellow broadcaster “within nine to 12 months.”
Scripps took a defensive stance in response to Sinclair’s overture, saying in a statement that “the board will take all steps appropriate to protect the company and the company’s shareholders from the opportunistic actions of Sinclair or anyone else.”
Elsewhere in the local TV business, Texas-based Nexstar, the nation’s largest TV broadcaster, is seeking government approval for its $6-billion deal to buy rival broadcaster Tegna.
Business
Gas just hit $6 in Los Angeles. Here’s where you can still find it for $5
The cost of gasoline hit an unwelcome benchmark in the Los Angeles area on Tuesday as the average price per gallon officially reached the $6 mark, according to the American Automobile Assn.
National gas prices also hit an unpleasant peak Tuesday when they surpassed the $4 mark for the first time in nearly four years. Russia’s invasion of Ukraine sent prices up in 2022, and this time the surge in cost is due to Iran’s control over the Strait of Hormuz — through which roughly one-fifth of the world’s oil supply passes — amid the ongoing war.
Average gas prices at the local and national levels have increased by more than $1 a gallon since the U.S. and Israel initiated the conflict with Iran on Feb 28. And average national prices for diesel, the fuel used by most delivery trucks, have seen an even larger increase, up to $5.45 a gallon from around $3.76 before the war began, according to AAA.
Gas stations still have the ability to set their own prices, meaning there is a significant range seen across the region.
On the high end of the spectrum, the infamously expensive Chevron on the corner of Alameda Street and East Cesar Chavez Avenue in Chinatown is charging more than $8.70 a gallon. However, there are also several stations where gas still costs around $5 a gallon, according to the GasBuddy app.
As of Tuesday, the stations with more acceptably priced gas in L.A. County include:
- The 76 at 4600 Melrose Ave. in East Hollywood, where gas costs $4.89 a gallon.
- The Sinclair at 4590 Melrose Ave. in East Hollywood, $4.97 a gallon.
- The Mobil at 730 E. Las Tunas Drive in San Gabriel, $4.99 a gallon.
- The American Oil at 6850 Long Beach Blvd. in Long Beach, $5.09 a gallon.
- The United Brothers Gas at 502 W. Duarte Road in Monrovia, $5.14 a gallon.
- The Circle K at 8609 Garvey Ave. in Rosemead, $5.25 a gallon.
- The Arco at 8351 Washington Blvd. in Pico Rivera, $5.29 a gallon.
- The Arco at 10808 Lakewood Blvd. in Downey, $5.29 a gallon.
Californians may be pulling their hair out over the uptick in oil costs, but for many consumers in European countries, wartime disruptions in oil supplies have resulted in even more extreme price surges. In Paris, for example, the average price per gallon hit the equivalent of $10.27 this week.
In a Tuesday statement, White House Press Secretary Karoline Leavitt vowed that “gas prices will plummet back to the multi-year lows American drivers enjoyed before these short-term disruptions” once the U.S.-Israel joint military campaign aimed at crippling Iran’s nuclear and missile programs is complete. President Trump said Tuesday that he expected the United States to end its involvement in the war with Iran within three weeks.
“President Trump remains committed to fully unleashing American energy dominance, lowering costs, and putting more money back in the pockets of hardworking American families,” Leavitt said.
The uptick in gasoline prices has led to frustration across the country.
A recent AP-NORC poll found that 45% of U.S. adults are “extremely” or “very” concerned about being able to afford gas in the next few months, up from 30% shortly after Trump won the 2024 presidential election.
The price surge also has had political ramifications for oil production in California, with Trump invoking a Cold War-era law to force the controversial resumption of offshore drilling in the Golden State, citing the need to bolster domestic oil production for national security purposes.
The Associated Press contributed to this report.
Business
Apple at 50: How a garage startup became a $3.5-trillion titan
Fifty years ago, Steve Wozniak knew he built a great personal computer, but the young engineer couldn’t convince his employer, Hewlett-Packard, to buy into the big idea.
“Five times they turned me down for the personal computer. I wanted Hewlett-Packard to do it. I loved my company, but now Steve Jobs and I had to go into business,” Wozniak told The Times.
Wozniak and Jobs, both in their 20s, co-founded Apple with Ron Wayne on April 1, 1976.
Back then, personal computers were very expensive and rare. Apple would go on to revolutionize the tech industry, creating innovative, intuitive and beautiful gadgets billions of people would buy again and again.
Apple Inc.’s then-CEO Steve Jobs speaks in front of an early image of himself and Steve Wozniak during an Apple event on Jan. 27, 2010, in San Francisco.
(Justin Sullivan / Getty Images)
Apple, now one of the world’s most valuable and powerful companies, turns 50 this week.
From its humble beginnings when the founders worked out of Jobs’ family garage, Apple has ballooned over the last five decades, opening a sprawling ring-shaped headquarters in Cupertino, Calif., and employing roughly 166,000 workers.
Its market value has surpassed $3.5 trillion, making it the second-largest company in the world after Nvidia. In the fiscal year ending in September, Apple reported revenue of $416 billion and a net income of $112 billion. The company has attracted a large loyal fan base with more than 2.5 billion active Apple devices worldwide.
“Apple is more than just a technology company. It’s really a cultural icon,” said Jacob Bourne, a technology analyst at eMarketer.
By creating well-designed products that blur the lines between work and enjoyment, Apple helped foster an emotional connection to the brand, he said. The company’s strong stance on privacy and security has cultivated trust among legions of its fans who line up at Apple’s retail stores to buy its latest products.
“Every company claims to strive for excellence. It’s just a trope. But, man, you go inside Apple and talk to these people, and it’s almost a mania. It’s intense to work at Apple. A lot is expected of you,” said David Pogue, a journalist and author of “Apple: The First 50 Years.”
This attention to detail is apparent in Apple’s products.
When Apple built a way for people to unlock their devices with their faces, the company tested the technology at Harley-Davidson motorcycle rallies and even hired Hollywood special effects artists to ensure life-like masks couldn’t spoof its facial recognition system, Pogue said.
Pogue’s book, released ahead of Apple’s anniversary, goes through Apple’s long history, chronicling the company’s key players — including Jobs’ leadership style and temper — and the challenges it faced as it rose to the top.
“Apple’s story is an epic tale of frenetic all-nighters and creative rebellion,” he wrote in his book. “Of titanic successes (iPods, iPhones, iPads) and instructive failures (Lisa, Apple III, MobileMe). Of funny, idealistic, scary-smart workaholics — coming up on three generations of them — who want to make things better by making things better. It’s about management, marketing, and strategy — and also about creativity, drive, and obsession.”
Jobs shows an Apple iPhone at the MacWorld Conference in San Francisco on Jan. 9, 2007.
(Paul Sakuma / Associated Press)
Apple went through periods of financial trouble and uncertainty.
In the 1990s, the company laid off a third of its workforce and was days away from bankruptcy before the return of Jobs, who left the company in 1985 after clashing with the board and then-Chief Executive John Sculley.
In 2011, Jobs died of pancreatic cancer at 56, fueling more uncertainty around the company’s future. Apple has faced scrutiny over working conditions at Chinese factories where Apple devices and other electronics are produced.
The company had massive breakout moments of success, including the release of the iPhone in 2007, outpacing rivals such as BlackBerry and sparking the shift to smartphones.
“Apple kept up with it all. Apple was always flexible,” Wozniak said. “Now we’ve got so many different avenues, from the surfaces to other machines and AirPods and all that.”
The secret to the company’s success was it managed its brand well and didn’t make “lousy junk” that breaks down, he said.
The tech giant — which is building a new office complex in Culver City — also expanded its footprint into Hollywood in 2019 with the launch of Apple TV+, the streaming service known for such TV shows as “Severance,” “The Morning Show” and the comedy “Ted Lasso.” In 2022, it became the first streamer to win an Academy Award for best picture for family drama “CODA.”
Apple, known for looking forward, took time to reflect and celebrate its half-century.
Earlier in March, Apple held a surprise concert featuring artist and producer Alicia Keys, who performed at its Grand Central Store in New York.
The company has held celebrations in different parts of the world, showcasing artists in China, Korea, Thailand, the United Kingdom and Mexico as well.
Apple worked with artists to light up the Sydney Opera House in Australia with art designed on the iPad.
Apple Chief Executive Tim Cook with Alicia Keys at a 50th anniversary celebration at Apple Grand Central in New York on March 13.
(Theo Wargo / Getty Images for Apple)
“Through every breakthrough, one idea has guided us — that the world is moved forward by people who think different,” wrote Tim Cook, Apple’s chief executive, in a public letter about the milestone.
It’s not just Apple that’s been celebrating.
In January, RR Auction held an auction to celebrate the anniversary that included rare items such as Jobs’ bedroom desk and bow ties. A 1976 check signed by Jobs and Wozniak before the founding of Apple and an Apple I computer prototype board each sold for more than $2 million, according to the auction’s website.
The Computer History Museum in Mountain View, Calif., has been hosting events and opened a new exhibit to celebrate Apple’s anniversary.
Inside the museum, rare prototypes of Apple products, including its personal computers and smartphones, were on display to showcase the Silicon Valley powerhouse’s long journey. A wooden Apple I case, a clear acrylic Macintosh, a large iPod prototype and other items from Apple’s past fill the room.
Earlier this month, Pogue hosted a sold-out evening event that featured key people in Apple’s history, including its former chief executive Sculley.
Wayne, the Apple co-founder who left the company days after its founding, also made a rare appearance. He departed from Apple early, he said, because he thought it was too financially risky.
“If the whole thing came unglued, Jobs and Woz didn’t have two nickels to rub together, so who are they going to come after? Obviously. And I didn’t feel that I could stand the risk of such a disaster,” he said.
Sculley, who became Apple’s chief executive in 1983 and held the position for a decade, was initially reluctant to leave PepsiCo, but Jobs eventually persuaded him.
“He said, ‘Do you want to sell sugar water for the rest of your life, or do you want to come with me and change the world?’” Sculley said on stage.
Today, the world is very different, and technology has evolved.
The rise of artificial intelligence that can generate text and images has prompted anxiety about the future. And it’s spurring the creation of hardware such as smartglasses and robots.
But AI can also create problems such as “deepfakes” that make it seem like a person is saying something or doing something they’re not, Wozniak noted.
People spend a lot of time scrolling through videos on social media, addicted to their phones instead of interacting with their friends and family.
“The world is run by people who want to sell things,” Wozniak said. “They’re not going to let us get away from that.”
Apple is also contending with the AI race and is seen to be trailing. Its shares rose more than 55% over the last three years but the broader Nasdaq Composite index rose more than 75% and it ceded its throne as the world’s largest company by market value to Nvidia.
Meanwhile, there are questions swirling around when Cook, 65, will retire.
For now, Apple appears positioned well, analysts said.
“I see Apple being able to weather the current pressures at least for the foreseeable future,” said Bourne, the eMarketer analyst.
Business
Californian chocolate recalled for being spiked with Viagra ingredients
Chocolate products from a Californian company have been recalled after they were found to have been spiked with the potentially dangerous ingredients used in Viagra and Cialis.
The San Francisco Bay Area’s Gear Isle recalled the products after they were found to contain undeclared prescription drug ingredients used to treat erectile dysfunction, the U.S. Food and Drug Administration announced last week.
The products, sold online across the U.S., were found to have sildenafil and tadalafil. The ingredients could cause a “life-threatening” drop in blood pressure when mixed with nitrates found in prescription drugs, according to the FDA.
The two recalled products are Gold Lion Aphrodisiac Chocolate Male Enhancement Sachet and Ilum Sex Chocolate Male Sexual Enhancement Booster. The FDA initially issued a warning in February advising consumers not to purchase the second item after confirming the product contained tadalafil.
Men who use nitrates to treat cardiac conditions are most at risk when using the products, according to the announcement, which urged customers who purchased the products to stop using them immediately.
The Ilum sexual enhancement chocolate comes in black packaging with yellow and white font that reads “male sex chocolate.” The Gold Lion product is sold in purple packaging.
Gear Isle specializes in “adult novelties,” the company’s website states. The company doesn’t make any of the products it sells, according to its website.
Gear Isle has not received reports of adverse reactions from these products, according to the FDA announcement. The company has reached out directly to customers to coordinate returns and refunds.
The FDA warned consumers that products marketed as dietary supplements, which are typically promoted for sexual enhancement, weight loss and pain relief, can contain hidden drug ingredients.
“Consumers should exercise caution before purchasing these products,” the February announcement read. “FDA is unable to test and identify all products marketed as dietary supplements that have potentially harmful hidden ingredients.”
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