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Sinclair and Tribune Part 2: The Redux


Weeters

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Long-shot, but considering the breach of contract allegations on Tribune's part regarding Sinclair, could this be the opening act of Sinclair possibly going the way of RKO General (particularly if similar or worse actions are uncovered)?

 

By then it could open the possibility starting new media groups/ or one that has come out bankruptcy.

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Long-shot, but considering the breach of contract allegations on Tribune's part regarding Sinclair, could this be the opening act of Sinclair possibly going the way of RKO General (particularly if similar or worse actions are uncovered)?

It may not be as large of a "long shot" as you might think, anything is possible

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Long-shot, but considering the breach of contract allegations on Tribune's part regarding Sinclair, could this be the opening act of Sinclair possibly going the way of RKO General (particularly if similar or worse actions are uncovered)?

You must have no clue what the RKO General case was all about. And no it doesn't apply AT ALL.

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RKO General's parent company General Tire got busted for violating the Foreign Corrupt Practices Act. I think the Sinclair - Cunningham relationship might come under greater regulatory scrutiny given the revelations brought to light in the Tribune lawsuit.

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Now Sinclair has withdrawn its apps regarding their now-terminated deal, and ask the ALJ to terminate the proceeding.

 

I was hoping there would still some sort of a hearing/proceeding, even if the deal is dead.

 

Nice try, Sinclair...

 

That's why people are charged with attempted murder, even if they back out of committing the actual crime.

 

They misled Tribune and the FCC and need to be held accountable.

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By the way, Tribune is holding a Q&A with stations today (more Q, not so much A).

 

Basic message: "Media is consolidating and we need to figure out the best long term value for the company."

 

Translation: Still no raises and the engineers are out or that black electrical tape, so can they borrow the Scotch Tape from the assignment desk?

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The link to the lawsuit of Sinclair by Tribune is here and the exhibit related to the lawsuit is here as well

 

This was a good read. IMO, it was less of the issues with anti-trust [DOJ] that did Sinclair in (because DOJ would have just sued -- see AT&T/Warner], but more of the shadier sidecar deals that they've been shamming through for probably the last decade or so.

 

WGN buyer Steven Fader is so buddy-buddy with David Smith that Smith not only holds a CONTROLLING INTEREST in the auto dealer, but ALSO RENTS OFFICE SPACE TO THEM through their real estate ventures.

 

I almost want to give Newsmax & Free Press credit for investigative reporting, but hell, Sinclair has put this out there themselves -- it's in their public SEC filings...

 

Now Sinclair has withdrawn its apps regarding their now-terminated deal, and ask the ALJ to terminate the proceeding.

 

I was hoping there would still have some sort of a hearing/proceeding, even if the deal is dead.

 

Nice try, Sinclair...

 

That's why people are charged with attempted murder, even if they back out of committing the actual crime.

 

They misled Tribune and the FCC and need to be held accountable.

 

Unfortunately, that ain't likely to happen, considering the FCC doesn't oppose Sinclair's motion to dismiss. The FCC problems will probably go away [for now]... but Delrahim will keep them in legal limbo for a while.

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WGN buyer Steven Fader is so buddy-buddy with David Smith that Smith not only holds a CONTROLLING INTEREST in the auto dealer, but ALSO RENTS OFFICE SPACE TO THEM through their real estate ventures.

 

I knew this was gonna be special the moment I began researching Fader and turned up the fact that, on the ground floor of the building where WGN TV LLC and MileOne Autogroup are headquartered...was a restaurant called Cunningham's, owned by the Smith family.

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This was a good read. IMO, it was less of the issues with anti-trust [DOJ] that did Sinclair in (because DOJ would have just sued -- see AT&T/Warner], but more of the shadier sidecar deals that they've been shamming through for probably the last decade or so.

 

WGN buyer Steven Fader is so buddy-buddy with David Smith that Smith not only holds a CONTROLLING INTEREST in the auto dealer, but ALSO RENTS OFFICE SPACE TO THEM through their real estate ventures.

 

I almost want to give Newsmax & Free Press credit for investigative reporting, but hell, Sinclair has put this out there themselves -- it's in their public SEC filings...

 

 

 

Unfortunately, that ain't likely to happen, considering the FCC doesn't oppose Sinclair's motion to dismiss. The FCC problems will probably go away [for now]... but Delrahim will keep them in legal limbo for a while.

The only reason why I say Sinclair had issues with the DOJ is Sinclair, itself, refused to sell off the stations that Justice ordered Sinclair to sell and one of those markets was St. Louis. Turned out Justice did not order KPLR to be sold off (like what we initially thought) instead, Justice ordered KDNL to be spun-off but instead of doing that, Sinclair decided to do its own thing and put KPLR up for sale instead of KDNL. Also, on top of that, Sinclair dared Makim Delrahim to sue them

 

As for the problems between Sinclair and the FCC as long as Chris Ripley believed that they did not mislead the FCC (and Tribune) more than likely, the FCC will proceed the case with the ALJ even with Tribune terminating the merger. As I said in the shoutbox last night, it's up to Ripley whether they want to stay in the broadcasting business or eventually, be forced to either sell their stations or have the licenses of the stations they own pulled from the air-waves.

 

I knew this was gonna be special the moment I began researching Fader and turned up the fact that, on the ground floor of the building where WGN TV LLC and MileOne Autogroup are headquartered...was a restaurant called Cunningham's, owned by the Smith family.

Coincidence? I think not

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The only reason why I say Sinclair had issues with the DOJ is Sinclair, itself, refused to sell off the stations that Justice ordered Sinclair to sell and one of those markets was St. Louis. Turned out Justice did not order KPLR to be sold off (like what we initially thought) instead, Justice ordered KDNL to be spun-off but instead of doing that, Sinclair decided to do its own thing and put KPLR up for sale instead of KDNL.

 

On top of that, Justice would not have approved of the buyer Sinclair did find for KPLR (Meredith).

 

It's amazing to think one of the largest media merger deals of all time died in St. Louis.

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On top of that, Justice would not have approved of the buyer Sinclair did find for KPLR (Meredith).

 

It's amazing to think one of the largest media merger deals of all time died in St. Louis.

Simply because of the fact that Sinclair did not want to do what the Justice Department asked them to do and they insisted on a top-four duopoly in St. Louis (even though KDNL does not rank in the top four) yet Justice didn't budge on that either. So really Justice wanted both KDNL and KPLR sold off together but Sinclair choosed not to do that

 

But either way, at the end of the day it was Sinclair's fault that their deal with Tribune collapsed the way it did and they still haven't admitted to the fact they lied to the FCC and Tribune (and they probably never will)

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Simply because of the fact that Sinclair did not want to do what the Justice Department asked them to do and they insisted on a top-four duopoly in St. Louis (even though KDNL does not rank in the top four) yet Justice didn't budge on that either. So really Justice wanted both KDNL and KPLR sold off together but Sinclair choosed not to do that

 

Sinclair probably could have owned one of KTVI or KDNL *and* KPLR, but their desire to retain both of the Big 4 stations did them in.

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Unfortunately, that ain't likely to happen, considering the FCC doesn't oppose Sinclair's motion to dismiss. The FCC problems will probably go away [for now]... but Delrahim will keep them in legal limbo for a while.

 

In the near term I doubt it. They have that lingering "character issue" they have to deal with.

 

From Jessell yesterday:

Tribune’s withdrawal at its first contractual opportunity was no surprise. At things now stand, no deal involving Sinclair is possible. Having been accused of “lack of candor” by the FCC, Sinclair can’t buy a low-power station in Death Valley right now, let alone a major TV station group.

____

 

Sinclair can continue to churn out cash, but, from a strategic standpoint in broadcasting, is indefinitely sidelined. Until it resolves the alleged character issues at the FCC, it cannot buy a broadcast license. It can’t even renew one. That’s a hard place for a company that, along with Nexstar and Gray, has led the consolidation of the broadcast industry for the past two decades.

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In the near term I doubt it. They have that lingering "character issue" they have to deal with.

 

From Jessell yesterday:

Which from all indications Sinclair will just keep on saying what they have been saying ever since the FCC sent the now-dead merger to the ALJ

 

Sinclair will never resolve the Character Issues and it'll cost them in the long run

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Which from all indications Sinclair will just keep on saying what they have been saying ever since the FCC sent the now-dead merger to the ALJ

 

Sinclair will never resolve the Character Issues and it'll cost them in the long run

I disagree. The company absolutely can resolve those character issues, even if the chances are improbable at this current juncture.

 

Never say never.

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It's amazing to think one of the largest media merger deals of all time died in St. Louis.

 

Well, we are one of the murder capitals of the country, you know. Clearly, it's why Sinclair's too afraid to re-start news on KDNL and why companies like Nexstar steer clear of our humble burg.

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I disagree. The company absolutely can resolve those character issues, even if the chances are improbable at this current juncture.

 

Never say never.

Knowing what Sinclair has been saying since the FCC sent the merger to the ALJ I hope that I'm wrong and that they DO resolve the character issues but, I just don't think Sinclair will do it

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Here on the Milwaukee front, with the Sinclair deal now dead, how long until Scripps and Hearst could try to bail out Sinclair and buy/or lease WVTV? I can't see them being a solo shop for too long given the current cilmate...or they and WMSN could stay put due to Sinclair's legal troubles.

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Here on the Milwaukee front, with the Sinclair deal now dead, how long until Scripps and Hearst could try to bail out Sinclair and buy/or lease WVTV? I can't see them being a solo shop for too long given the current cilmate...or they and WMSN could stay put due to Sinclair's legal troubles.

 

WMSN would be headed for Nexstar or Standard if they get sold. As for WVTV, based on recent behavior, Hearst is the more likely place for them to land. If shit really hits the fan, those will be the first ones they sell off. The standalone CW/MNT stations and the Fox stations that don't have their own news department.

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Here on the Milwaukee front, with the Sinclair deal now dead, how long until Scripps and Hearst could try to bail out Sinclair and buy/or lease WVTV? I can't see them being a solo shop for too long given the current cilmate...or they and WMSN could stay put due to Sinclair's legal troubles.

I doubt they'd get rid of WVTV. They could very easily pull a WPXE and consolidate all master control, which would nearly eliminate the need to have any significant local presence. (Keep in mind that the Pai-led FCC eliminated the Main Studio Rule, which would permit Sinclair to do just that.)

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