Categories Earnings, Finance, LATEST, U.S. Markets News

Sinclair to sell stations to win FCC approval for Tribune deal

If there is a book on M&As in the media industry, at least one chapter needs to be allotted to the Sinclair-Tribune merger.

Recognized as one of the most diversified local TV station operators, Sinclair had showed its interest in acquiring Tribune Media that owns close to 42 TV stations. The mega deal worth $3.9 billion was announced last year in May, but the trek ahead wasn’t easy as expected.

Courtesy – Pixabay

Currently, the merger is awaiting a clearance from the Federal Communications Commission (FCC) and the Department of Justice. If this deal gets a nod from the regulators, Sinclair, which owns over 173 broadcast stations, will dominate in 70% of the American households beating other (major) players like 21ST Century Fox and Texas-based Nexstar.

If this deal gets a nod from the regulators, Sinclair, which owns over 173 broadcast stations, will dominate in 70% of the American households

The review of this merger has been so far delayed by the FCC.  And it has now demanded that Sinclair sell a handful of its assets so that it meets the ownership guidelines.  Even before the deal, Sinclair owned 6% more TV stations than what was stipulated by the authorities. Succumbing to this pressure, Sinclair has agreed to sell its TV stations in New York and Chicago. The company has also decided to divest some of its businesses in smaller markets including Seattle and St. Louis. Surprisingly, Sinclair made these announcements without having a suitable buyer for WPIX in New York and WGN in Chicago.

Enter Murdoch

Apparently, Rupert Mudroch 21st Century Fox has been eyeing the TV stations that are currently owned by Tribune Media. And, it is heard that Fox is in talks with Sinclair. This decision makes sense as Mudroch’s company is in talks with Walt Disney as it plans to unload parts of its media company. The Murdochs are more likely to shift their focus on the broadcast network. This gives Sinclair a larger control on the broadcast distribution over 21st Century Fox.  Hence it wouldn’t be surprising to see Fox scooping those TV stations that Sinclair unloads, but it is less likely to take those stations functioning in smaller markets.

Most Popular

What to look for when CVS Health (CVS) reports Q3 earnings

Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain

eBay (EBAY): A few factors that helped drive growth in Q3 2024

Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,

CVX Earnings: Chevron reports lower revenue and profit for Q3 2024

Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top