Sinclair Broadcast Group, the largest USA broadcaster, will acquire Tribune Media Co., in a deal worth almost $4 billion. That would represent a premium of close to 30 percent of the price of Tribune Media shares on February 28, the day before Reuters broke the news that Sinclair had approached Tribune Media to discuss an acquisition. The Hunt Valley, Maryland-based company values the total transaction at $6.6 billion, when debt is included. Sinclair, which now owns 173 channels, reaches more than 38% of the nation.
By buying Tribune, Sinclair intends to "create a leading nationwide platform that includes our country's largest markets", according to CEO Chris Ripley in a statement.
NEW YORK (AP) Sinclair Broadcast Group, already the nation's largest local TV station operator, wants to be even bigger.
Sinclair will acquire 100 percent of Tribune's shares - each valued at $43.50, according to CNBC.
Sinclair owns and operates stations in 81 markets, including Washington, D.C.; Seattle; St. Louis; Minneapolis; Pittsburgh; and Milwaukee.
Current FCC rules limit the national TV audience for any single owner at 39 percent and prohibit any owner running more than two stations in most markets. The acquisition remains subject to approval by Tribune's shareholders, as well as the Federal Communications Commission and antitrust clearance.
A deal would give Baltimore-based Sinclair further control of the country's TV stations, which could be enabled by the FCC's recent vote to ease ownership caps.
Carrizo Oil & Gas, Inc. (NASDAQ:CRZO) To Release Earnings
Heading into the stock price potential, QEP Resources, Inc. needs to grow just 61.29% to cross its median price target of $18.5. The stock of Carrizo Oil & Gas Inc (NASDAQ:CRZO) has "Outperform" rating given on Wednesday, February 24 by Imperial Capital.
Currently, Tribune owns or operates 42 television stations in 33 markets, including WHNT News 19.
Sinclair will also gain Tribune's cable channel, WGN America; its 32% stake in the CareerBuilder web site; and its 31% stake in the Food Network.
"Sinclair has used its TV stations to launch the Sunday morning public affairs program 'Full Measure With Sharyl Attkisson.' Attkisson is a former CBS News correspondent who claimed the government hacked her computer after her aggressive reporting on the Obama administration".
Sinclair may sell certain stations in markets where it now owns stations to comply with FCC ownership requirements and antitrust regulations; these determinations will be determined during the regulatory approval process.
In 2014 Tribune spun off its newspaper businesses, including the Chicago Tribune and the Los Angeles Times into a new company called Tronc. Tribune Media also produces Robert Irvine's afternoon talk show for the CW.
Sinclair (SBGI) shares were up 0.5% in early trading to $36.95 Monday.
Comments