“Sinclair Broadcast Group fulfilled its obligations under the now-scuttled merger agreement with Tribune Media, Sinclair argues in its response to the $1 billion lawsuit Tribune filed against its former suitor earlier this month,” Variety reports. “Sinclair also filed a counterclaim against Tribune on Wednesday, blasting the company for its effort to build a case for litigation when it became clear that the FCC would not approve the $3.9 billion transaction.”
The proposed merger had come under federal scrutiny and had encountered opposition because it would have given Sinclair a broadcast empire of “unprecedented size and reach,” Variety notes.
“Tribune sued Sinclair for $1 billion in Delaware Chancery Court on Aug. 9, just minutes after the merger agreement expired at midnight on Aug. 8,” the report adds. “Sinclair’s filing revealed that it sought to reach a three- or six-month extension of the deal to address the FCC hurdles but Tribune refused. The deal was first reached in May 2017 and was subject to lengthy reviews at the Justice Department and FCC.”