FOX, BLACKSTONE MAY TEAM UP FOR TRIBUNE BID
21st Century Fox is in talks with Blackstone Group, the giant investment firm, to make an offer for Tribune Media and its stable of television stations, people briefed on the negotiations said on Sunday night, a move that would potentially forestall a rival bid for Tribune.
The move by Fox and Blackstone is aimed at not only bolstering Fox’s television portfolio but also beating an offer by Sinclair Broadcast Group, the country’s biggest station operator, ahead of a bidding deadline this week. The people briefed on the talks spoke on condition of anonymity because negotiations are continuing.
Under the terms of the potential arrangement, Blackstone would contribute cash to the venture, while 21st Century Fox, the huge entertainment company run by the Murdoch family, would contribute its 28 owned-andoperated stations.
Representatives for 21st Century Fox and Blackstone declined to comment on their talks, which were reported earlier by Bloomberg News and The Financial Times.
Tribune, which was formed when its parent company divided its television and its print media holdings into two separate companies, owns 42 stations — and has the most Fox affiliates of any station owner. As of Friday, the company’s market value stood at about $3.2 billion.
The surge of interest in Tribune comes after the Federal Communications Commission decided last week to change regulations governing station ownership.
The FCC’s move to reinstate the socalled UHF discount — backed by the agency’s two Republican commissioners and opposed by its sole Democratic one — essentially loosened rules limiting how many stations a single operator could own, though companies are still forbidden to cover more than 39 per cent of American households. The UHF discount allowed broadcasters to include only half of their stations broadcasting on ultra-high-frequency bandwidth toward ownership limits.
Bringing back the discount, analysts have said, all but guarantees new efforts at consolidating the television industry even further. Broadcasters, including Tribune, praised the FCC’s decision last week as one that lets them become more competitive with rival service providers like cable and satellite companies.
“Today’s action by the Federal Communications Commission is a welcome step towards creating a more level playing field for all local broadcasters in their relationships with television networks, satellite operators, cable providers, and streaming video services,” Tribune said in a statement last week.
The expected return of the UHF discount under the Trump administration was what led companies like Sinclair, which has 173 stations, and Fox to weigh bids for Tribune. Other broadcasters are said to be considering takeover offers for Tribune as well.
The FCC’s chairman, Ajit Pai, a Republican, has hinted that he is open to further deregulation of television station ownership.