Tribune calls off $3.9B buyout by Sinclair
Tribune Media Co, which is on the hook for a USD 135 million breakup fee, said today that it is filing a lawsuit against Sinclair, citing breach of contract.
Sinclair Broadcast Group Inc wanted the Chicago company's 42 TV stations and had agreed to dump almost two dozen of its own to score approval by the Federal Communications Commission.
Last month, however, 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."
Tribune, based in Chicago, claimed today that Sinclair used "unnecessarily aggressive and protracted negotiations" with the Department of Justice and FCC over regulatory requirements and that it refused to sell the stations it needed to.
Sinclair operates 192 stations, runs 611 channels and operates in 89 US markets. It would have been able to expand rapidly into numerous new markets with the Tribune acquisition.
The Maryland company did not immediately respond early today to a request for comment from The Associated Press. (AP) MRJ
MRJ(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)