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Tribune Calls off $3.9B Buyout by Sinclair

Tribune Calls off $3.9B Buyout by Sinclair

Created: August 09, 2018 09:47 AM

NEW YORK (AP) - Tribune is withdrawing from its $3.9 billion buyout by Sinclair and it's filing a lawsuit against it, citing breach of contract.

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Tribune Media Co. would be on the hook for a $135 million breakup fee, according to the agreement reached last year.

Sinclair Broadcast Group Inc. had offered to buy the Chicago company's 42 TV stations and had agreed to get rid of stations in some markets to gain regulatory approval. Tribune claims Sinclair used "unnecessarily aggressive and protracted negotiations" with the Department of Justice and Federal Communications Commission over regulatory requirements and refused to sell the stations it needed to.

The two companies had until midnight Wednesday to call off their deal.

Sinclair is one of the nation's largest owners of TV stations. It does not own any stations in the Northland but does own the CW affiliate in the Twin Cities and stations in Milwaukee, Green Bay, and Madison, while Tribune owns one station in Milwaukee.

Copyright 2018 The Associated Press. All rights reserved.

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