Tribune backs out of $3.9B Sinclair merger

Tribune Media has backed out of its proposed $3.9 billion merger with Sinclair Broadcast Group and filed a $1 billion lawsuit against the broadcasting giant for allegedly breaching their agreement.

In an announcement early Thursday morning, Tribune blamed Sinclair for the regulatory roadblocks that the deal has encountered at the Federal Communications Commission (FCC). Last month, the FCC voted unanimously to subject the merger to an administrative law proceeding, a taxing and time-consuming process that was expected to kill the deal.


"In light of the FCC's unanimous decision, referring the issue of Sinclair's conduct for a hearing before an administrative law judge, our merger cannot be completed within an acceptable timeframe, if ever," Tribune CEO Peter Kern said in a statement.

"This uncertainty and delay would be detrimental to our company and our shareholders. Accordingly, we have exercised our right to terminate the Merger Agreement, and, by way of our lawsuit, intend to hold Sinclair accountable," he added.

http://thehill.com/policy/technology/401029-tribune-backs-out-of-sinclair-merger?userid=229233