NEW YORK (TheStreet) -- Journal Communications (JRN) shares are climbing in early market trading on Thursday, up 19% to $10.42, after the company announced that it had reached an agreement with E.W. Scripps (SSP) to merge broadcast operations.
The two companies will spin off their newspaper holdings into a separate company as part of the deal.
The Journal Media Group will consist of the the Journal Sentinal and the Scripps newspapers and will be headquartered in Milwaukee, WI.
The Journal Communications arm will be merged with Scripps and headquartered in Cincinnati, OH.
The new broadcast company bearing Scripps name is expected to generate $800 million in annual revenue.
Scripps shares are up 9.55% to $21.88 today.
TheStreet Ratings team rates JOURNAL COMMUNICATIONS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate JOURNAL COMMUNICATIONS INC (JRN) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."