UPDATE: Tribune withdraws from Sinclair merger, saying it will sue for 'breach of contract'
Last edited Thu Aug 9, 2018, 07:14 AM - Edit history (1)
Source: Washington Post
Tribune Media said Thursday that it would withdraw from its $3.9 billion merger with Sinclair Broadcast Group, adding it would sue Sinclair for “breach of contract” over its failed negotiations with regulators over the deal.
The breakdown of the deal reflects a stunning reversal of fortunes for Sinclair, which had confidently announced the tie-up last year as a “transformational” event and the biggest acquisition in its history.
But it began to stumble last month after the Federal Communications Commission raised “serious concerns” about the deal, which originally would have reached roughly 70 percent of U.S. households.
“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 time frame, if ever,” said Peter Kern, Tribune’s chief executive officer, in a statement Thursday. “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. ” Sinclair did not immediately respond to a request for comment.
Read more: https://www.washingtonpost.com/technology/2018/08/09/tribune-withdraws-sinclair-merger-saying-it-will-sue-breach-contract/?utm_term=.bb54b62684fc
Original headline & article -
by Washington Post Staff August 9 at 6:33 AM
The move comes after the Federal Communications Commission raised “serious concerns” about the deal which originally would have reached roughly 70 percent of U.S. households.
This is a developing story. It will be updated.
https://www.washingtonpost.com/news/business/wp/2018/08/09/tribune-withdraws-from-sinclairs-3-9-billion-media-merger-plan/?utm_term=.e6d5fc2cb8c0
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