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COMING UP:Share Opener Variant 3



>> Tribune Media on Thursday pulling the plug on its merger with Sinclair Broadcast Group, and it isn't going quietly. Reuters' Carl O'Donnell is on the story.>> So the Sinclair-Tribune deal really fell apart because the FCC, the regulatory body that was reviewing it, felt that Sinclair didn't make a good faith effort to try to meet some of the divest requirements.
Sinclair attempted to sell one of their TV stations to an individual who had very close ties to the executives. And so the feeling was that they would still effectively control that station. The FCC as a result sort of penalized Sinclair by putting this deal under what's called administrative review which many people take as a death now.
>> The nearly $4 billion merger would have combined Tribune's 42 TV stations with Sinclair's 192. Cementing Sinclair's position as the nation's largest broadcaster. But Tribune didn't just walk away from that proposition, it's also suing its suitor.>> For Tribune, this is all extremely frustrating. They had a agreed to do this deal with the hope that it would provide shareholders with a deal premium worth about $1 billion.
And their expectation was that Sinclair would do everything it can to try and get regulatory approvals so that the deal can get closed. And they feel that Sinclair fell short by effectively, potentially trying to deceive the FCC. So they're suing for that $1 billion premium value that's gonna be lost and we'll see how that plays out in court.
>> While the deal had many critics who said it would have given too much power to one entity, it had one big supporter, President Trump.>> Sinclair is known for being a conservative pro-Trump leaning news provider. So the expectation was that Trump might pull some strings to make sure this gets passed through.
And indeed, he did put out some angry Tweets when the FCC gave Sinclair a hard time. But I think what this really shows is that the FCC wants to make clear that they are a non-partisan organization.>> While it walked away this time, Tribune is likely to receive other bids as the industry faces a wave of consolidation.