Sinclair Broadcast has agreed to pay a $48 million to the Federal Communications Communication to shut investigations associated with its tried merger with Tribune Media. The FCC said in its announcement that that is the biggest civil penalty paid by a broadcaster within the company’s history. It added that Sinclair would also abide by a strict compliance plan to close three open investigations.
The merger, which was worth $3.9 billion and would have created one of the largest broadcasters in the U.S., was called off by Tribune in August 2018. Tribune also filed a suit accusing Sinclair of breaching the contract and misleading regulators in a misguided and ultimately unsuccessful attempt to retain control over stations that it was obligated to sell.
In today’s t, the FCC stated its settlement with Sinclair was associated to investigations into the corporate’s disclosure of data associated to the acquisition of Tribune-owned stations, its failure to establish sponsored content material is produced for broadcast, and whether or not the corporate has met its obligations to barter retransmission consent agreements in good religion.
In the present day’s FCC assertion, chairman Ajit Pai, who was essential of the deal earlier than it was scrapped, mentioned Sinclair’s conduct throughout its try and merged with Tribune was fully unacceptable. Right now’s penalty, together with the failure of the Sinclair/Tribune transaction, ought to function a cautionary story to different licensees searching for Fee approval of a transaction sooner or later.