Tribune does not go ahead on its merger with Sinclair Broadcast Group.
The merger that was to take place between Tribune Media and Sinclair Broadcast Group for $3.9 billion never took place.
The breakup was expected but not with Tribune accusing Sinclair of deceiving them. Thursday saw Tribune pull out from its merger and it has gone one step further. Tribune has sued a $1million damages against Sinclair. It has filed the case and provided 176-page evidence against Sinclair, providing proof of deception against Sinclair Broadcast Group.
With the deal falling apart, Sinclair will lose its ability to reach out to 72 percent households in broadcast news sector.
Eddie Lazarus, from the general counsel at Tribune says “Sinclair promises to close the deal as early as possible in the most practical manner”.
Further business continues as usual at Sinclair and acquisition proposals elsewhere are already considered. But doubts are raised about partnerships, as there are not many allies away from President Donald Trump.
There are many who criticize Sinclair as allegations proceed against them. There may also be ethical investigations against it. Special mention has to be made about the unhealthy selling practice of stations to its close allies. This may affect the broadcast licenses that Sinclair holds. Apart from these issues, there is an investigation from the Justice Department that has been confirmed by Sinclair.
The CEO of Sinclair, Chris Ripley has spoken about deals that are forthcoming as some of its expansion ideas. Even though the deal with Tribune has not worked out, Sinclair is out to expand in the advertising platform towards TV streaming services.
Ripley has however acknowledged, “Sinclair transactions will be adversely affected with the fall out with Tribune”, in an SEC filing.
Tribune Media has taken an unexpected turn by pulling the plug on its merger with Sinclair and going one step ahead by suing it too.