USD 3.9B buyout of Tribune by Sinclair ends in acrimony

The USD 3.9 billion buyout of Tribune Media by Sinclair collapsed Thursday, ending a bid to create a massive media juggernaut that could have rivaled the reach of Fox News.

Tribune Media Co. said Thursday that it is suing Sinclair for breach of contract and at least USD 1 billion in damages, according to its complaint.

Sinclair used "unnecessarily aggressive and protracted negotiations" with the Department of Justice and Federal Communications Commission over regulatory requirements, the Chicago company said, and it refused to sell the stations it needed to in order to gain regulatory approval.

Sinclair Broadcast Group wanted the Chicago company's 42 TV stations and had initially agreed to dump almost two dozen of its own to score approval by the FCC.

The media company, which has enjoyed the support of President Donald Trump, appeared to be cruising toward approval by U.S. 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." That drew a rebuke from Trump.

"So sad and unfair that the FCC wouldn't approve the Sinclair Broadcast merger with Tribune," Trump tweeted. He said that allowing Sinclair to expand its reach would have led to a "much needed conservative voice by and for the people."