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Lead-In with Merger Scrapped, Tribune a Target Again Analysts Believe Broadcaster Will Find Plenty of Post-Sinclair Suitors

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Lead-In with Merger Scrapped, Tribune a Target Again Analysts Believe Broadcaster Will Find Plenty of Post-Sinclair Suitors Lead-In With Merger Scrapped, Tribune a Target Again Analysts believe broadcaster will find plenty of post-Sinclair suitors BY MIKE FARRELL TATION GROUPS and broadcast networks hungry for scale are expected to line up for Tribune Media in the wake of the broadcast- Ser’s decision to toss its $3.9 billion Sinclair Broadcast Group merger on the scrap heap. Tribune said Aug. 9 that it would terminate the merger, mainly because of frustrations with Sinclair’s behavior during the approval process. Tribune also filed suit in Delaware Chancery Court Aug. 9 seek- ing $1 billion in damages from Sinclair, claiming the broadcaster breached its contract by failing to disclose key information regarding divestitures and unneces- sarily bogging down the review process. Tribune cited Sinclair’s “unnecessarily aggressive and protracted negotiations” with regulators, its refusal to sell stations that would have helped obtain approval and self-serving divestiture structures that helped diminish the merger in the eyes of the government. Sinclair: ‘We Did Not Mislead’ Sinclair put out a statement saying it was disap- pointed the deal was over and blamed the FCC re- view process, but said Tribune’s lawsuit had no merit. “We unequivocally stand by our position that we did not mislead the FCC with respect to the trans- Tribune Media’s properties include major-market stations and some 14 Fox affiliates. action or act in any way other than with complete candor and transparency,” Sinclair CEO Christopher With its new structure after the Disney transaction Fox already owns 28 TV stations in 17 markets, Ripley said. closes early next year, Fox is expected to be aggres- covering 37% of U.S. television homes. They include While litigation likely goes through the court sys- sive on the deal front. seven duopolies in the top 10 markets: New York, Los tem over the next several months, Tribune is expected Fox officials declined to comment on speculation Angeles, Chicago, Dallas, San Francisco, Washington, to draw a lot of attention from other broadcasters, around Tribune. But Fox has coveted certain Tribune D.C. and Houston. Fox also owns duopolies in Min- hungry to bulk up in the new media broadcasting stations, like affiliate KCPQ Seattle, for years. “They neapolis, Phoenix, Orlando and Charlotte. ecosystem. have always wanted Seattle because of the NFC Executive chairman Rupert Murdoch told analysts Tribune has about 42 stations rights and Seahawks games,” said one in- in December that adding stations would “give us in 33 markets, including WPIX dustry executive familiar with Fox, adding greater strength in getting clearances.” New York, KTLA Los Angeles, that WSFL, Tribune’s Miami CW affiliate, WGN Chicago, KPCQ Seattle and could also be attractive to the broadcaster ‘Unlikely’ to Be Independent Long KTVI and KPLR St. Louis, as well as a flip opportunity: Sunbeam Televi- Fox isn’t the only potential suitor. In a research as cable network WGN America, sion’s WSVN is the Fox affiliate in that note, Evercore ISI broadcast analyst David Joyce multicast networks Antenna TV market, but that agreement could eventu- said Tribune is expected to attract a wide variety of and ThisTV, global web properties ally be unwound. interest. and metadata businesses. Fox would probably prefer to own sta- Tribune, Joyce wrote in a research note, is “un- 21st Century Fox, which has tions in NFL towns with National Football likely to remain independent for long. We believe agreed to sell most of its cable and Conference teams (Fox airs NFC games Tribune management has positioned the company to studio assets to The Walt Disney during the season), but stations in large be a seller.” Co. — with its broadcast, news Sinclair CEO Christopher Ripley said markets don’t come to the table often. Joyce reminded investors that Tribune’s proxy and sports assets joining a new the broadcaster “unequivocally” did “Denver is a nice get,” said the execu- statement on the deal revealed a four-month not mislead the FCC. company tentatively named New tive who asked not to be named. “Any bidding war for the company, which ended with Fox — has been speculated as a markets with a Fox affiliate and an NFL Sinclair increasing its bid to $43.50 per share (from prime candidate to purchase the Tribune stations. football team are prime targets.” $32.90 originally) after Nexstar Media Group made Tribune has about 14 Fox affiliates in markets the Weighing in the NFL and other factors, top Tribune five counter-offers. broadcaster has coveted for years, and could sell off station targets for Fox could include the seven stations Other participants included six other broadcasters the rest to third parties. that were part of the earlier deal (Seattle; Denver; (like 21st Century Fox, in partnership with Black- Fox has already expressed a desire to bulk up on Cleveland; Miami; Sacramento and San Diego, Calif.; stone Group) and six private-equity funds. stations. It originally agreed to buy seven stations and Salt Lake City) and Tribune’s other Fox affiliates in “For these reasons, we believe there would be no from the combined Sinclair-Tribune, but that avenue St. Louis; Indianapolis; Milwaukee; Kansas City; Har- shortage of potential buyers if Tribune ultimately Media Tribune courtesy Graphic is apparently closed off now. risburg, Pa.; Hartford, Conn.; and Greensboro, N.C. again comes to market,” Joyce wrote. 4 BROADCASTING & CABLE AUGUST 6-13, 2018 BROADCASTINGCABLE.COM Lead-In FRANKEL JOINS THEY SAID IT ‘B&C,’ ‘MCN’ Daniel Frankel has joined the staff “I’m more amazed by the fact of Broadcasting & Cable as senior that the Academy could not content producer, technology. Fran- kel previously was editor of Fierce recognize Crazy Ex [-Girlfriend] Cable for four-plus years. Earlier in Frankel for any original music, given the his career, he served in editing roles at GigaOm/Paid Content, The Wrap fact that they do original music and Variety. He will oversee tech coverage and other topics week in and week out.” for B&C and for sister magazine Multichannel News, both — Mark Pedowitz, president of The CW, at the Summer TCA Press Tour, la - part of Future plc. Reach him at [email protected] Pedowitz at the Summer menting the musical dramedy series’ absence among the [six] nominated and on Twitter at @DannyFrankel. TCA Press Tour shows for an Emmy Award for Outstanding Original Music and Lyrics. THE WATCHMAN STATOF Senior content producer Michael Malone's weekly look at the programming scene THEWEEK NBC Sports Net’s High ‘Octane’ Offering, $56M Ben Stiller Goes to Prison, Fox’s ‘Kids’ Are Alright — Net loss comScore reported during SEASON THREE OF car-enthusiast series Caffeine the second quarter. comScore recently and Octane is revving up on NBCSN. The series came out of a re-audit of its financials, finds the funkiest cars out there, but is more inter- during which time the company could not ested in the folks behind the wheel. release earnings information. “The cars are one thing,” said Ed Coughlin, ex- ecutive producer. “The people behind the cars are what we seek out.” The Aug. 14 episode checks in with former MLB FATES AND FORTUNES pitcher Kenny Rogers and his teen son, who isn’t all that into baseball. “He and his kid were looking for something to bring them together,” Coughlin said. EXEC MOVES “Cars did that.” Other highlights include a profile of Demetrio OF THE WEEK Montalvo, a Cuban cabbie who hits the U.S. car Caffeine and Octane shows for parts, and Magnus ‘Urban Outlaw’ Walker, n (1) STEVE SWAIN steps who collects Porsches and “takes them a step down as senior VP and further,” Coughlin said. chief financial officer of It’s not hard to figure out the Octane part of Caffeine and Octane. Caffeine refers to people meeting Dish Network effective for coffee before heading to the car show. “Our three hosts meet at a coffee shop and go to the show Aug. 22. He will also re- together,” Coughlin said. “It’s a unique way that we get viewers into the show.” sign as principal financial Caffeine and Octane is looking beyond car enthusiasts for viewers. “We want to keep car guys, but I got them,” Coughlin said. “We want to attract the car guy’s wife.” officer for Dish Network And coming home after the Summer TCA Press Tour, packed with new show sizzle reels and pan- and Dish DBS. The board els, a few series look promising. One is Escape at of directors has named 1 Dannemora, Ben Stiller’s Showtime series about the PAUL ORBAN, Dish senior two guys who busted out of prison, and the female VP and chief accounting officer, as principal finan- prison employee who abetted them, in upstate New cial officer for Dish Network and Dish DBS. Swain, York in 2015. who joined Dish in 2011, is exiting the company to Stiller got to know some residents of Dannemora, serve as CFO of Brookdale Senior Living. N.Y., while shooting. “At first, they were a little bit skeptical, and I understand that,” said Stiller, who noted that many figured he was there to shoot a comedy, given his background. “The biggest thing was, tell the whole story. A few bad apples aren’t representative of what really goes on here.” “The search for And The Cool Kids, starring Martin Mull, Vicki the next member Escape at Dannemora Lawrence, Leslie Jordan and David Alan Grier as of the British Royal Family upstart residents of an old folks’ home, looks kind begins this fall!” of cool. It will air on Fox. Despite its mature cast, creator Charlie Day — @TheEricGoldman, in response to a tweet from said Cool Kids did particularly well with younger viewers in tests.
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