Sinclair confirms TV deal with Fox

Sinclair confirms TV deal with Fox

Sinclair confirms TV deal with Fox

Sinclair Broadcast Group enjoyed a much-needed jolt on Wall Street today (5/9), as investors cheered the news that it is teaming with Tribune Media to sell six FOX affiliates and the CW affiliate in Miami-Fort Lauderdale to 21st Century Fox.

The move comes as Sinclair is selling some stations to meet regulatory approval for its pending $3.9 billion acquisition of Tribune Media.

Fox said the deal will let it compete in 19 of the top 20 markets, with a larger presence in the West.

The FCC required Sinclair to divest of stations in markets where it already owns one or more television stations. This expansion will further enrich our valuable alignments with the NFL, including our new Thursday Night Football rights, Major League Baseball and college sports assets.

Two of the Sinclair stations are in California, and the rest are in Colorado, Florida, Ohio, Utah and Washington. These stations were among the 43 Tribune stations Sinclair sought to purchase last May.

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"After the divestitures, we are now acquiring $4.6 billion of enterprise value, which includes $2.4 billion for the core TV and entertainment business, $0.5 billion for real estate held for sale and $1.7 billion for Television Food Network (TVFN)".

The timing was ideal, as Sinclair's Q1 results weren't so terrific.

Four analysts surveyed by Zacks expected $660.3 million.

The company did not disclose specific advertising revenue performance.

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