This is a Huge Blow to the Sinclair/Tribune Deal
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Sinclair wants the FCC to give them another chance to get the Tribune deal passed.
The company released this statement:
Sinclair has withdrawn the pending divestitures of stations in Dallas (KDAF) and Houston (KIAH) to Cunningham Broadcasting Corporation and Tribune has withdrawn the pending divestiture of WGN in Chicago to WGN-TV LLC. Sinclair intends to request permission from the FCC to put the Dallas and Houston stations into a divestiture trust to be operated and sold by an independent trustee following the closing of the Tribune acquisition. As a result of the withdrawal of the application relating to WGN, Sinclair will simply acquire that station as part of the Tribune acquisition, which is, and has always been, fully permissible under the national ownership cap.
In the original proposal, Sinclair was hoping to continue to run the Dallas and Houston station but selling them a in "sidecar" deal, which is used as nothing more to skirt FCC rules.
But, Sinclair wants WGN in Chicago badly and they really, really don't want to give it up. At one point, Sinclair said that they were going to sell WGN in a "sidecar" deal to Steven Fader, a longtime friend of Sinclair's David Smith.
Fader's name might have been on the license, but Sinclair was going to run the entire operation. Some Sinclair says that want to keep WGN outright.
But, it seems that Sinclair's latest offer to amend the deal fell on deaf ears. Last night the FCC The FCC said it voted unanimously to refer Sinclair's acquisition of Tribune to an administrative law judge.
This was not the news that Sinclair wanted to hear and it means that more than likely the deal might not be approved.
Stay tuned....
