Sinclair/Tribune Deal Still on Hold
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When Sinclair announced last Spring that was buying Tribune, the company told investors that they expected the deal to close by the end of the year.
As we start to enter the 3rd month of 2018, the Sinclair/Tribune deal has still not closed.
Sinclair thought that having Donald Trump and FCC Chairman Ajit Pai in their hip pocket that the deal was all but done.
But now, an internal investigation is underway at the Federal Communications Commission into the agency’s relationship with the company.
And the Justice Department is still looking hard at antitrust issues with the Sinclair deal.
The New York Times writes that the big issue is about much power Sinclair, the country’s largest broadcaster, will have over local media markets and national television audiences. Sinclair has argued that by combining forces with Tribune, it will be able to bolster local news coverage and be a stronger competitor to internet giants like Facebook and Google.
The Justice Department is concerned that the merger will harm competition in several cities. The agency is looking at whether the deal could also give Sinclair too much power over television advertising and over licensing deals with cable and satellite companies that retransmit their broadcasts.
While the Justice Department looks into that, the FCC's The inspector general is looking into whether the F.C.C. chairman, Ajit Pai, improperly coordinated with Sinclair on regulatory decisions that enabled the merger.
In its new proposal, Sinclair asked that it be able to keep multiple stations in greater Greensboro, N.C., greater Harrisburg, Pa., and Indianapolis. The company said it should be able to have two of the top four stations in the local markets after the F.C.C.’s action last November to relaxed rules barring too much concentration among top stations.
Sinclair’s filing of an amended plan last week could indicate that the company believes it is close to a resolution with the Justice Department and that it is confident enough to start the process moving again at the FCC.
So, in the end, it is still likely that the deal will be approved and the broadcast industry will be in worse shape than it was before the deal.
The biggest hit will be to local news coverage. Sinclair is a company with an agenda that runs news operations on the cheap. That is not what this industry needs right now, but thanks to Sinclair lining the right politicians pockets, that is exactly what you are going to get.
