Fox, Blackstone said to craft Tribune bid

Rupert Murdoch’s 21st Century Fox Inc. is teaming with Blackstone Group LP to make an offer to acquire TVstation owner Tribune Media Co., rivaling a planned bid by Sinclair Broadcast Group Inc., people familiar with the situation said.

The all-cash bid would be funded by Blackstone while Fox would contribute its TV stations to the joint venture that would acquire Tribune, said one of the people, who asked not to be identified because the talks are private. The two sides are in talks about a deal ahead of a deadline this week for final bids. No agreement has been reached, and talks may still fall apart.

Fox has been approached in recent weeks about backing an alternative to a takeover by Sinclair, which has been looking to acquire Chicago-based Tribune for a price said to be in the high $30s a share.

A combination of Tribune and Sinclair, two of the country’s biggest TV station owners, would give Sinclair a stronger negotiating hand with Fox about how to split fees from cable providers. Yet Fox has a say in Tribune’s destiny because it has to consent to the transfer of the company’s affiliate agreements to a new owner, people familiar with the situation said previously.

Sinclair has been looking to finalize a deal by the time Tribune reports first-quarter earnings, which it’s to do next week.