Sinclair Broadcast Group is in talks with Tribune Media about a possible combinations, according to a Reuters report citing anonymous sources.
Shares of both companies surged on the news with Tribune's stock up 9 percent and Sinclair's rising 5.4 percent.
Neither Hunt Valley-based Sinclair nor Tribune Media would comment.
Some sort of deal makes sense since Sinclair, which has been on a buying spree inr ecent years, said it plans more acquisitions, while Tribune Media is for sale. Tribune Media is the former parent company of the Baltimore Sun and still owns the newspaper's headquarters at 501 N. Calvert St.
Wall Street was taking the report seriously Wednesday morning.
In a brief Wednesday morning, Marci Ryvivker, a senior analyst with Wells Fargo Securities, said that Sinclair and Tribune would have big synergies and described a potential deal as "a good sign for the entire industry."
Circa, a Sinclair Broadcast Group news and entertainment website targeting millennials, plans to expand internationally, with video-on demand channels to be available in Europe this spring.
The Circa brand announced a partnership Monday with Ownzones Media Network, a global distribution and content...
Circa, a Sinclair Broadcast Group news and entertainment website targeting millennials, plans to expand internationally, with video-on demand channels to be available in Europe this spring.
The Circa brand announced a partnership Monday with Ownzones Media Network, a global distribution and content...
The two companies could be discussing a number of possibilities, including a full combination or acquiring Tribune's CW-affiliated stations, the WGN America cable network or its stake in the Food Network, Reuters reported.
Sinclair and Tribune Media are two of the largest U.S. local television station owners, with market caps of $3.8 billion and $3.3 billion respectively, and a full combination could face regulatory hurdles because of Federal Communications Commission rules that limit how many households a single entity can reach nationwide.
Sinclair officials have expressed optimism that the regulatory environment will improve under the the administration of President Donald J. Trump and his new Federal Communications Commission chairman, Ajit Pai.
Sinclair Broadcast Group Inc. turned in weaker-than-expected fourth-quarter results despite doubling profit, but the company said Wednesday it expects a boost this year from potential deregulation and the early phase of a new broadcast transmission system.
"With … the potential for deregulation...
Sinclair Broadcast Group Inc. turned in weaker-than-expected fourth-quarter results despite doubling profit, but the company said Wednesday it expects a boost this year from potential deregulation and the early phase of a new broadcast transmission system.
"With … the potential for deregulation...
Of the possible deals between Sinclair and Tribune, Ryvivker said in her brief it thinks WGN America is the most likely target. Tribune is unlikely to want to part with Food Network's strong dividends and CW has lower retransmission rates.
Shares of Tribune, which will report earnings later today, were up 9 percent, trading at $37.64 each in late morning trading. Sinclair shares were trading at $42.08 each, up 5.4 percent.
Sinclair reported weaker-than-expected results in the fourth quarter, with income of $120.9 million on sales of $79.7 million for the fourth quarter.
sarah.gantz@baltsun.com
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