Tribune withdrew from its USD 3.9 billion buyout by Sinclair, ending a bid to create a massive media juggernaut that could have rivaled the reach of Fox News.
Tribune Media Co, which is on the hook for a USD 135 million breakup fee, said today that it is filing a lawsuit against Sinclair, citing breach of contract.
Sinclair Broadcast Group Inc wanted the Chicago company's 42 TV stations and had agreed to dump almost two dozen of its own to score approval by the Federal Communications Commission.
The media company which has enjoyed the support of President Donald Trump, appeared to be cruising toward approval by US regulators.
Last month, however, FCC Chairman Ajit Pai said that he had "serious concerns" about the deal, saying that Sinclair might still be able to operate the stations "in practice, even if not in name."
It was admonished by media watchdogs in April after dozens of Sinclair news anchors read an identical script expressing concern about "one-sided news stories plaguing the country."
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