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Reports: Sinclair Close to Closing Deal for Tribune Media for $4 Billion. No Fox Bid

May 7, 2017  •  Post A Comment

“Sinclair Broadcast Group is nearing a deal to acquire Tribune Media Co for close to $4 billion after prevailing in an auction for one of the largest U.S. television station operators, according to people familiar with the matter,” reports Reuters.

Bloomberg, in its story about the deal, notes, “21st Century Fox, with funding from Blackstone Group LP, had been planning an offer for Tribune but in the end didn’t submit a bid, according to a person familiar with the matter. Nexstar Media Group Inc. also was preparing an offer, according to people familiar with the matter.”

Written by Paul Barbagallo and Alex Sherman, the Bloomberg piece also says, “A potential marriage of two of the largest local TV station owners in the U.S. [Sinclair and Tribune] was made easier last month when the FCC restored a rule that allows TV station groups to count just half of their coverage area for Ultra High Frequency stations to comply with a 39 percent nationwide cap set by Congress.”

The Reuters piece, by Liana B. Baker and Jessica Toonkel — which also says Fox never bid — adds,  “Sinclair’s offer values Tribune Media at around $44 per share, the sources said on Sunday. That would represent a premium of close to 30 percent of the price of Tribune Media shares on Feb. 28, the day before Reuters broke the news that Sinclair had approached Tribune Media to discuss an acquisition.

“Tribune Media shares ended trading on Friday at $40.29, giving it a market capitalization of $3.5 billion.”

To check out all of the Tribune Media brands, from its 42 TV stations to WGN America to Zap2It and TVbytheNumbers, please click here.

To read more about this item please click on the links, above, to both the Reuters and Bloomberg stories.

To read an excellent analysis of why Fox was interested in Tribune Media in the first place, we urge you to read this essay, by our good friend Harry Jessell, at TVNewsCheck.

 

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