Plug pulled on Tribune, Sinclair $3.9 billion merger

Buyout of broadcast company ends in acrimony

The $3.9 billion buyout of Tribune Media by Sinclair collapsed Thursday, ending a bid to create a massive media juggernaut that could have rivaled the reach of Fox News.

Tribune Media Co. said Thursday it is suing Sinclair for breach of contract and at least $1 billion in damages, according to its complaint.

Sinclair used “unnecessarily aggressive and protracted negotiations” with the Department of Justice and Federal Communications Commission over regulatory requirements, the Chicago company said, and it refused to sell the stations it needed to in order to gain regulatory approval.

Sinclair Broadcast Group wanted the Chicago company’s 42 TV stations and had initially agreed to dump almost two dozen of its own to score approval by the FCC.

The media company, which has enjoyed the support of President Donald Trump, appeared to be cruising toward approval by U.S. regulators.

Last month, however, FCC Chairman Ajit Pai said he had “serious concerns” about the deal, saying Sinclair might still be able to operate the stations “in practice, even if not in name.”

That drew a rebuke from Trump.

“So sad and unfair that the FCC wouldn’t approve the Sinclair Broadcast merger with Tribune,” Trump tweeted. He said that allowing Sinclair to expand its reach would have led to a “much needed conservative voice by and for the people.”

Sinclair operates 192 stations, runs 611 channels and operates in 89 U.S. markets.

In Chattanooga, Sinclair bought WTVC-TV, the ABC affiliate that broadcasts on channel 9, in 2011. Four years later, Sinclair also purchased WDSI-TV and WFLI-TV. Combined the Chattanooga Sinclair stations include WTVC-TV9, The CW Chattanooga, MeTV, myTV and the WeatherNation.

The merger with Tribune would have been able to expand Sinclair rapidly into numerous new markets.

Sinclair has become a significant outlet for conservative views.

It was admonished by media watchdogs in April after Deadspin, a sports news site, pieced together clips of dozens of TV anchors for Sinclair reading from the same script, which warned viewers about “biased and false news” from other media outlets.

Sinclair has defended the decision to have its anchors read from the same script across the country as a way to distinguish its news shows from unreliable stories on social media.

The Maryland company said Thursday in a prepared statement that the Tribune lawsuit is “entirely without merit.”

AP FILE PHOTO BY STEVE RUARK Sinclair Broadcast Group Inc.’s headquarters sits in Hunt Valley, Md. Tribune Media is ending its merger deal with Sinclair Broadcast and filed a lawsuit against Sinclair for breach of contract. Sinclair had offered to buy Tribune’s 42 TV stations. The two companies had until midnight Wednesday to call the deal off and have been facing tough regulatory challenges.