Sinclair nears Tribune deal after FCC changes law

NEW YORK: Sinclair Broadcast Group is close to buying Tribune Media, a deal made possible after the Federal Communications Commission (FCC0 voted last month to ease limits on TV-station ownership in the United States.

Sinclair would pay about US$45 (RM195) a share, or about US$4 billion, for the Chicagobased broadcasting company. Tribune’s closing price on Friday was US$40.29, giving it a market value of US$3.5 billion.

The acquisition of Tribune would give Sinclair TV stations in big media markets like New York, Chicago and Miami, strengthening its hand in negotiations with pay-TV distributors and major broadcast networks.

The larger scale also would help the combined company face down online competitors vying for a piece of the advertising pie.

A potential marriage of two of the largest local TV station owners in the US was made easier last month when the FCC restored a rule that allows TV station groups to count just half of their coverage area for Ultra High Frequency stations to comply with a 39 per cent nationwide cap set by Congress. Bloomberg