Exclusive: Sinclair approaches Tribune Media about possible deal - sources

[Ccook55]

In Miami, I see a network switch - With WSFL getting Fox & WSVN getting the CW

Beyond that, nothing else will change

That’s probably not going to happen now. Fox buying WSFL was predicated on the merger going through. Now that it’s got a fork in it, everyone in Miami should stay where they are.

 

[Y2kTheNewOldies]

Here is an update and the drama continues

Soon after the FCC made clear last month it was not going to approve Sinclair’s merger with Tribune, Tribune hit Sinclair with a $1 billion-plus suit, alleging that Sinclair had effectively breached their agreement and killed the deal by dragging out the approval process at the Justice Department and grossly mishandling the process at the FCC.

Today, Sinclair struck back, countering that it was Tribune that breached the agreement by failing to make “reasonable best efforts” to obtain regulatory approval as it was obliged to do and, near the end, positioning “itself for litigation against Sinclair.”

The Tribune suit and countersuit were in filed the Delaware Court of Chancery.

The 182-page countersuit includes 141 responses to specific allegations made by Tribune and 11 “affirmative defenses.”

It asks the court to dismiss Tribune’s complaint, order Tribune to pay its legal and professional fees and grant “further relief as this court deems just and proper.”

“We were extremely disappointed that the Tribune transaction was terminated,” said Sinclair CEO Chris Ripley in a statement

We are likewise disappointed that Tribune, through its meritless lawsuit, is seeking to capitalize on an unfavorable and unexpected reaction from the [FCC] to capture a windfall for Tribune.

“As described in our filing, we fully complied with our obligations under the merger agreement and worked tirelessly to close the transaction. The company looks forward to vigorously defending against Tribune’s claims and pursuing our own claim.”

Under terms of the agreement, the Sinclair countersuit says, Tribune and Sinclair were both required to make their “reasonable best efforts” to bring the deal to fruition.

“But the Merger Agreement did not make Sinclair a guarantor of the outcome of the regulatory process. Nor did the Merger Agreement preclude Sinclair from attempting to bargain with the regulators in an effort to negotiate the best terms available.”

“Notwithstanding Tribune’s self-serving and after-the-fact attempts to distance itself from Sinclair and its own efforts to obtain approval of the transaction, Tribune and Sinclair in fact were full partners in the DOJ approval process (albeit with a few disagreements along the way), which ultimately was on the verge of success, and full partners in the FCC approval process (with no meaningful disagreements along the way), which unfortunately was not successful.”

https://tvnewscheck.com/article/top-news/221438/sinclair-fires-back-tribune-suit/

 

[Y2kTheNewOldies]

https://www.cnbc.com/2019/06/26/fcc...clair-disclosures-on-failed-tribune-deal.html

Update the FCC will investigate Sinclair over how it handled the Sinclair/Tribune Talks.

The Federal Communications Commission has opened a new investigation into whether Sinclair Broadcast Group engaged in misrepresentations or a lack of candor in its failed effort to win approval for a $3.9 billion bid to purchase Tribune Media.

In a June 25 letter to Sinclair posted Wednesday on the FCC’s website, the government agency directed Sinclair to answer a series of questions and provide documents by July 9, warning that “failing to respond accurately and completely to this (letter) constitutes a violation of the act and our rules.”

Sinclair did not immediately respond to a Reuters request for comment.

An administrative judge in March dropped a hearing into allegations that Sinclair, the largest U.S. broadcast station owner, may have misled regulators. Judge Jane Halprin added however that the allegations “are extremely serious charges that reasonably warrant a thorough examination.”

Tribune terminated the sale of 42 TV stations in 33 markets to Sinclair, which has 192 stations, in August. A month earlier the FCC referred the deal for a hearing, questioning Sinclair’s candor over the planned sale of some stations and suggesting Sinclair would effectively retain control over them.