08-09-2018, 08:01 AM
Tribune pulls out of Sinclair deal as conservative broadcaster's expansion plan collapses
By MARGARET HARDING MCGILL
08/09/2018 07:29 AM EDT
Updated 08/09/2018 08:11 AM EDT
Tribune Media on Thursday withdrew from its $3.9 billion acquisition at the hands of Sinclair Broadcast Group and announced it's suing the conservative mega-broadcaster for breach of contract.
The company said Sinclair failed to uphold its contractual obligation to make reasonable best efforts to get regulatory sign-off as quickly as possible. "Sinclair’s entire course of conduct has been in blatant violation of the Merger Agreement and, but for Sinclair’s actions, the transaction could have closed long ago," Tribune said in a statement.
Despite the enthusiastic backing of President Donald Trump, Sinclair's bid to massively expand by rolling up Tribune met opposition across the political spectrum. The deal's collapse is a victory for the company's many liberal critics, but also conservative rivals like Fox News and Newsmax, whose CEO Chris Ruddy raised his misgivings directly with an unmoved Trump.
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“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,” said Tribune CEO Peter Kern 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 continued.
Trump had slammed the FCC's move in a tweet July 24.
“This would have been a great and much needed Conservative voice for and of the People,” Trump tweeted. “Liberal Fake News NBC and Comcast gets approved, much bigger, but not Sinclair. Disgraceful!"
When asked about the president’s tweet during a congressional oversight hearing, Pai said, “I stand by our decision.”
https://www.politico.com/story/2018/08/0...ent-769043
By MARGARET HARDING MCGILL
08/09/2018 07:29 AM EDT
Updated 08/09/2018 08:11 AM EDT
Tribune Media on Thursday withdrew from its $3.9 billion acquisition at the hands of Sinclair Broadcast Group and announced it's suing the conservative mega-broadcaster for breach of contract.
The company said Sinclair failed to uphold its contractual obligation to make reasonable best efforts to get regulatory sign-off as quickly as possible. "Sinclair’s entire course of conduct has been in blatant violation of the Merger Agreement and, but for Sinclair’s actions, the transaction could have closed long ago," Tribune said in a statement.
Despite the enthusiastic backing of President Donald Trump, Sinclair's bid to massively expand by rolling up Tribune met opposition across the political spectrum. The deal's collapse is a victory for the company's many liberal critics, but also conservative rivals like Fox News and Newsmax, whose CEO Chris Ruddy raised his misgivings directly with an unmoved Trump.
......
“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,” said Tribune CEO Peter Kern 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 continued.
Trump had slammed the FCC's move in a tweet July 24.
“This would have been a great and much needed Conservative voice for and of the People,” Trump tweeted. “Liberal Fake News NBC and Comcast gets approved, much bigger, but not Sinclair. Disgraceful!"
When asked about the president’s tweet during a congressional oversight hearing, Pai said, “I stand by our decision.”
https://www.politico.com/story/2018/08/0...ent-769043
The ideal subject of totalitarian rule is not the convinced Nazi or the dedicated Communist but instead the people for whom the distinction between fact and fiction, true and false, no longer exists -- Hannah Arendt.