Fox acquires seven of Sinclair’s broadcasting stations for $1.5bn
Category: #world  By Saipriya Iyer  Date: 2018-05-11
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Fox acquires seven of Sinclair’s broadcasting stations for $1.5bn

Fox Broadcasting Co. has apparently signed an agreement with Sinclair Broadcast Group to purchase some of its television stations for a valuation of USD 1.5 billion. Allegedly, in a bid to win the Federal approval for its acquisition deal with Tribune Media, worth USD 3.9 billion, the American broadcaster has agreed to sell seven of its stations to 21st century Fox.

Apart from shelling out USD 1.5 billion, Fox will pour in another USD 100 million of working capital. For the record, the agreement with Fox would exclude stations where Sinclair will continue to provide services.

Fox has also teamed up with other proposed buyers of Sinclair stations and Tribune, including the likes of Howard Stirk, Standard Media Group LLC, an affiliate of Standard Genera, Cunningham Broadcasting Corp., and Meredith Corp. According to reports, on Wednesday, Sinclair shares rallied, closing up 9.3 percent at $29.85 each.

The proposed agreement has apparently kicked off a strong opposition from other market rivals with regards to monopolization across the diversified broadcast landscape. Expert claim that Sinclair’s conservative leanings have further heightened the concern. Reportedly, Sinclair’s strategic move to sell seven of its assets to Fox for Tribune’s takeover depicts a clear picture of the disruption across the media-ownership landscape.

Sources say that Fox has been also granted an option by Sinclair to purchase two of its stations based in Texas and Chicago, at a pre-set prices of USD 160 million and USD 15 million respectively. Also, it has been speculated, post this deal Fox would be competing 19 of the 20 markets, with significant dominance in the Western belt.

The deal is expected to close by the latter half of second quarter or early in the third quarter of this year. As per the official confirmation, it is subject to the approval of the Federal Communications Commission and U.S. Justice Department.



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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