Tribune Media kills $3.9B deal
NEW YORK — Tribune Media Co. withdrew from its $3.9 billion buyout by Sinclair, ending a bid to create a massive media juggernaut that could have rivaled the reach of Fox News.
Tribune Media, which is on the hook for a $135 million breakup fee, said Thursday that it also filed a breach-of-contract lawsuit against Sinclair and is seeking at least $1 billion in damages.
Sinclair used “unnecessarily aggressive and protracted negotiations” with the Department of Justice and Federal Communications Commission over regulatory requirements, the Chicago-based 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. But last month FCC Chairman Ajit Pai said that he had “serious concerns” about the deal, saying that Sinclair might still be able to operate the stations “in practice, even if not in name.”
Sinclair operates 192 stations, runs 611 channels and operates in 89 U.S. markets. It would have been able to expand rapidly into numerous new markets with the Tribune acquisition.
The Maryland company did not respond to a request for comment Thursday.
Free media advocacy groups cheered the demise of the deal. Phillip Berenbroick, senior policy counsel at Public Knowledge, said, “this latest development is good for consumers.”
Tribune stock rose 2.85 percent Thursday, closing at $34.60. Sinclair closed at $27.80, up 2.58 percent.