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Trouble for Sinclair/Tribune communications media merger:
https://www.reuters.com/article/us-tribune-media-m-a-sinclair/fcc-raises-concerns-about-sinclair-tribune-deal-shares-skid-idUSKBN1K6216?feedType=RSS&feedName=topNews&utm_source=twitter&utm_medium=Social
Business News July 16, 2018 / 11:36 AM / Updated 7 hours ago
FCC raises concerns about Sinclair-Tribune deal; shares skid
David Shepardson, Diane Bartz
WASHINGTON (Reuters) - Federal Communications Commission Chairman Ajit Pai said on Monday he had “serious concerns” about Sinclair Broadcast Group Inc’s (SBGI.O) proposed $3.9 billion acquisition of Tribune Media Co (TRCO.N), a surprise move which could potentially scuttle the deal and sent shares of both companies tumbling.
Pai, a Republican, said evidence presented as part of the approval process suggested that the planned divestiture of certain television stations “would allow Sinclair to control those stations in practice, even if not in name, in violation of the law.”
Pai, whom Democrats have accused of making a string of decisions benefiting Sinclair, proposed referring the matter to an administrative law judge. The move could result in a lengthy delay and could effectively kill the deal, as in other mergers referred for administrative proceedings. ...
Sinclair, which owns 192 stations, said in May 2017 that it planned to acquire Chicago-based Tribune’s 42 TV stations in 33 markets.
In April, Sinclair said it would sell 23 TV stations to obtain the necessary regulatory approvals. It needs FCC permission to own more than one station in some markets. ...
Sinclair, based in Hunt Valley, Maryland, has said that if the deal was approved, it would reach nearly 59 percent of the nation’s television households. Sinclair said Monday the deal “will create numerous public interest benefits and help move the broadcast industry forward at a time when it is facing unprecedented challenges.”
A majority of the FCC voted Monday to approve the draft order circulated by Pai’s office to refer the transaction for a hearing, a person briefed on the matter said.
“It’s widely recognized that when something is set for a hearing that the deal is not going to survive,” said Gigi Sohn, a top aide to former FCC Chairman Tom Wheeler. ...
The draft order raised questions about the divestiture of stations in Dallas and Houston as well as representations made by Sinclair about the divestiture of WGN-TV in Chicago. ...
Two FCC officials briefed on the matter said the language in the order made it extremely unlikely that Sinclair would be able to proceed with the merger as planned. ...
President Donald Trump has defended the conservative-leaning Sinclair, tweeting in April that the company was “far superior to CNN.”