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Tribune Sues Sinclair for $1 Billion

Aug 9, 2018  •  Post A Comment

Tribune Media has pulled out of its $3.9 billion buyout by Sinclair Broadcast Group, saying Sinclair broke its merger agreement, TVNewsCheck reports.

Tribune is suing Sinclair for “approximately $1 billion of lost premium to Tribune’s stockholders and additional damages in an amount to be proven at trial,” the story reports, quoting the complaint.

Tribune “says Sinclair broke its merger agreement by proposing ‘extremely risky and highly controversial divestitures to buyers that were specifically disfavored by the FCC staff,’ deliberately omitted material facts from FCC applications and generally antagonizing ‘the regulators at both DOJ and the FCC while seeking their approval,'” TVNewsCheck reports.

The report adds: “In its complaint filed in the Chancery Court in Delaware, Tribune claimed that Sinclair used ‘unnecessarily aggressive and protracted negotiations’ with the Department of Justice and the FCC over regulatory requirements and that it refused to sell the stations it needed to in order for regulatory approval.”

 

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