Sinclair Fires Back

Sinclair Broadcasting released a lengthy statement in response to Federal Communications Commission Chairman Ajit Pai's move to designate the Tribune deal for hearing before the FCC's administrative law judge. Sinclair said it had misled no one, had complied with FCC rules, been transparent about what it was trying to do, and was willing to adjust the merger yet again -- it has submitted five versions so far --  to avoid the hearing and close the deal.

“Sinclair was shocked and disappointed today by the news that FCC Chairman Pai was circulating an order proposing to designate our acquisition of Tribune for an administrative hearing. Although the actual Hearing Designation Order (HDO) has not yet been released, press reports indicate that a leaked version of the HDO [haering designation order] suggests that Sinclair may have engaged in misrepresentation or lack of candor. To the extent that the HDO does in fact include any such allegations, we deny such allegations in the strongest possible manner,” Sinclair said. “Throughout the FCC review process of this transaction, we have had numerous meetings and discussions with the FCC’s Media Bureau to make sure that they were fully aware of the transaction’s structure and basis for complying with FCC rules and meeting public interest obligations. These structures are consistent with structures that Sinclair and many other broadcasters have utilized for many years with the full approval of the FCC. During these discussions and in our filings with the FCC, we have been completely transparent about every aspect of the proposed transaction. We have fully identified who the buyers are and the terms under which stations would be sold to such buyer, including any ongoing relationship we would have with any such stations after the sales. We have filed all relevant agreements documenting such terms as required by FCC rules."