E.W. Scripps Co. (NYSE:SSP) is the latest newspaper and media company to undergo a facelift to better face challenges and opportunities online. The company proposed a spin-off that would allow investors to choose from the growth potential of new media or the dependable cash flow of old media.

The tax-free deal would create a new public entity containing the company's cable operations - including Food Network and HDTV - along with its internet operations - including Shopzilla and uSwitch. Meanwhile, SSP will retain the company's newspapers, television stations, licensing and syndication operations.

"It's our intention to create two publicly traded companies, each with a sharpened strategic focus that would foster continued growth, solid operating performance and a clear vision on how best to build on the specific strengths of our national and local media franchises," said chief executive Kenneth Lowe in a statement.

The past 24 months have been very difficult for old media companies as online publishers continue to eat into margins and reduce subscription rates. Companies like the Wall Street Journal and New York Times are even feeling the crunch and an industry shift has become all but inevitable.

Consequently, this move to divest new media from old media comes at the perfect time for shareholders and represents perhaps the company's only logical next step. Combined, these factors make SSP a stock worth watching closely!

Related Companies
IAC/InterActiveCorp (IACI)
ValueVision Media Inc. (VVTV)
News Corporation (NWS)