Sinclair counter-sues Tribune over failed merger
Sinclair Broadcast Group has filed a counter-lawsuit against Tribune Media, heightening a legal battle between the two companies that erupted following the implosion of their proposed $3.9 billion merger.
Sinclair on Wednesday filed its response to Tribune’s original lawsuit from earlier this month, alleging that its would-be partner reneged on their merger agreement by not doing everything possible to see that the deal closed.
The merger’s chances of obtaining regulatory approval dissolved last month when Federal Communications Commission (FCC) Chairman Ajit Pai unexpectedly announced that he had “serious concerns” about a series of side deals that Sinclair had proposed. Those deals were intended to make sure that the companies abided by media ownership restrictions.
“We were extremely disappointed that the Tribune transaction was terminated,” Sinclair CEO Chris Ripley said in a statement. "We are likewise disappointed that Tribune, through its meritless lawsuit, is seeking to capitalize on an unfavorable and unexpected reaction from the Federal Communications Commission to capture a windfall for Tribune."
http://thehill.com/policy/technology/404206-sinclair-counter-sues-tribune-over-failed-merger
