ICYMI: Bad News Racks Up for Sinclair
WASHINGTON, D.C. – Just a month ago, Sinclair Broadcast Group filed paperwork with the FCC officially announcing its intent to purchase Tribune Media, marking a key step in a massive expansion of the company’s political agenda-driven local news empire that experts characterize as “propaganda.”
Sinclair’s allies in the Trump Administration have made every effort to clear the way for the controversial merger’s approval, and Sinclair executives remain bullish, recently telling analysts, “We have no reason to believe (the deal) won’t close around the year’s end … The FCC has been very constructive in terms of its review.”
But in recent days, the news has been anything but good for Sinclair. Here are just a few examples:
Additional DOJ Scrutiny
The Department of Justice Antitrust Division has requested a second round of documents related to Sinclair’s proposed merger with Tribune. According to Bloomberg BNA, “A second request means that the merger will undergo a more rigorous review by the Justice Department that could last months. Some companies wait for a year for clearance after receiving a second request.”
Fox Takes a Swing
21st Century Fox, Fox News’ parent company, may remove its local affiliates from some Sinclair-owned stations. The development may be a preemptive strike against Sinclair as it pursues a merger with Tribune Media to establish what has been billed as its “own national network to compete with Fox for political conservative viewership.”
Sinclair Stock Bottoms Out
According to an Aug. 4th story in Crain’s Chicago Business, “Sinclair’s shares have declined about 14 percent in the past week, possibly on investor concerns that the deal could be blocked or slowed. Shares dropped 30 cents to $31.60 in early afternoon trading.” All told, Sinclair’s stock is trailing the Dow by more than 15 percent, year to date.
To speak with Karl Frisch about the Sinclair-Tribune merger, please contact Tucker Middleton at 202-644-8526 or tucker@alliedprogress.org.