TRCO/SBGI: Bidding Process Extended as Sinclair Seeks DOJ Resolution

Event Driven Takeaways
 

• Sinclair has extended the bidding deadline for divested TRCO/SBGI assets into March, according to a source close to the transaction.
• The companies are expected to announce a new timing agreement with the DOJ.
• There is no indication that the DOJ plans to block the deal. However, Sinclair may be required to sell more assets than the company desires.

The DOJ review of Tribune/Sinclair is expected to continue for several more weeks because of an extension in the bidding deadline for divested assets, Event Driven has learned.

According to a source close to the transaction, the bidding deadline has been extended into the first couple weeks of March.

Sinclair and Tribune had a timing agreement with the DOJ that expired Feb. 11. The companies have not subsequently announced details of any new timing agreement.

Although Sinclair has attempted to keep as many assets as possible, this appears to be a losing tactic at the DOJ, the source said. There is no indication the DOJ would block the deal. However, Sinclair may be forced to sell more assets than it would have liked.

Bankers for the merging parties have laid out a process to sell the assets to be divested, but that process has stopped and started repeatedly. The exact timing is a “moving target,” but once the bids have been submitted, Sinclair is expected to move quickly with any buyer to secure regulatory approval at the DOJ and FCC.

--Ryan Lynch