CHICAGO, Il. — The Sinclair Broadcast Group acquisition of Tribune Media is dead.
Tribune said in a statement Thursday that it has terminated its merger agreement with Sinclair.
Tribune Media is the parent company that owns WNEP-TV and several other local television stations across the country.
Tribune had been expected to walk away after the deal came under scrutiny from U.S. regulators. The FCC in July referred the merger to an administrative judge hearing, and called some of Sinclair’s proposed divestments into question.
Tribune said it will sue Sinclair for breach of contract, arguing Sinclair’s negotiations with the U.S. Justice Department and FCC were “unnecessarily aggressive.” Sinclair also refused to sell certain stations that would have helped the deal secure regulatory approval, Tribune claims.
“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 Peter Kern, Tribune Media’s Chief Executive Officer. “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.”
Analysts expect Tribune to seek another buyer.
Sinclair did not immediately respond to a request for comment sent outside of business hours.
This is a developing story.
