Sinclair to FCC: We're Priming Divestiture Pump

Sinclair has told the Federal Communications Commission it is taking steps to spin off whatever stations it will need to comply with national or local ownership limits on its proposed $2.9 billion merger with Tribune, but that it is not identifying them pending possible Department of Justice input of FCC rule changes that could change the plan. If the FCC loosens its ownership rules that could also affect the plan, but Sinclair was focused on answering the FCC's questions about how the deal is currently being structured.

There are 10 markets where a combined Sinclair/Tribune would run afoul of FCC prohibitions on owning two stations in a market, and the deal, even with the UHF discount that means only half a UHF audience's station would count, would result in a 45%-plus national audience reach without some spinoffs-- and the current cap is 39%. Sinclair was responding formally to an FCC Media Bureau request that the broadcaster back up a number of its pledges to bring its proposed $3.9 billion purchase of Tribune stations within the FCC's current media ownership rules, including the duopoly and national ownership cap, as well as Sinclair's explanation of the public interest benefits of the deal.