Sinclair Broadcast Group Inc. is nearing a deal to acquire Tribune Media Co. for close to $4 billion after prevailing in an auction for one of the largest U.S. television station operators, Reuters reported yesterday. A potential deal for Tribune could come as soon as Monday, just weeks after the Federal Communications Commission voted to reverse a 2016 decision that limits the number of television stations some broadcasters can buy. FCC Chairman Ajit Pai is planning to take a new look at the current overall limit on companies owning stations serving no more than 39 percent of U.S. television households. A combined Tribune and Sinclair could surpass this cap and face some regulatory challenges which could result in divestitures, analysts said. The combination would be a competitive blow to Fox because the added scale would give Sinclair more leverage in negotiations to carry Twenty-First Century Fox Inc.’s local networks. Together the companies would own a large chunk of Fox broadcast affiliates around the country. Negotiations between Sinclair and Tribune Media have not yet been finalized, and there is still a possibility the deal will not be reached. Tribune Media has 42 owned or operated broadcast stations, as well as cable network WGN America, Tribune Studios and WGN-Radio. Sinclair, which has a market capitalization of $3.36 billion, owns, operates or provides services to 173 television stations in 81 markets.
