Tue 01/30/2018 16:08 PM
Share this article:
Event Driven Takeaways
 
  • DOJ review of Tribune/Sinclair will extend beyond the Jan. 30 timing agreement that the merging parties had earlier reached with the agency, Event Driven has learned. Timing agreements are highly specific to individual deals and the extension of this review past the Jan. 30 date should not be viewed as a negative for DOJ’s ultimate decision on the merger.
  • Senior DOJ staff held a meeting on Jan. 26 to discuss antitrust reviews including the Tribune/Sinclair deal.
  • Bidding for the divested assets of Tribune/Sinclair remains open, and there may be multiple buyers.

The DOJ's review of Tribune/Sinclair will go beyond a timing agreement which expires today, Jan. 30, Event Driven has learned.

Senior staff at the DOJ held a meeting on Jan. 26 to discuss matters including Tribune’s acquisition of Sinclair, Event Driven has learned. A decision, however, is not expected to be made this week in the agency’s review of the deal.

The companies still need to reach an understanding with the DOJ about which exact assets need to be sold. Also, Sinclair must sign asset purchase agreements with a buyer or buyers, as previously reported. The shot clock at the FCC, which is also reviewing the transaction, remains paused while Sinclair proceeds with the divestiture process.

According to an industry source, bidding remains open for assets divested by Tribune/Sinclair, and it is possible that Sinclair will sell to multiple parties rather than a single buyer.

The Jan. 30 date was disclosed by Tribune in an SEC filing on Nov. 29, 2017. Although the merging parties initially reached an agreement with the DOJ not to consummate their merger before December 31, 2017, they later extended this date until Jan. 30, 2018, Tribune reported in the filing.

It could not be learned whether the parties have reached a new timing agreement with the DOJ. An attorney with Debevoise & Plimpton, the law firm of record for Tribune’s SEC filing, declined to comment.

The FCC’s shot clock is paused on day 167 of the 180-day timeline.

Event Driven’s coverage of this transaction can be found HERE.

--Ryan Lynch and Matt Tracy
 
Share this article:
This article is an example of the content you may receive if you subscribe to a product of Reorg Research, Inc. or one of its affiliates (collectively, “Reorg”). The information contained herein should not be construed as legal, investment, accounting or other professional services advice on any subject. Reorg, its affiliates, officers, directors, partners and employees expressly disclaim all liability in respect to actions taken or not taken based on any or all the contents of this publication. Copyright © 2024 Reorg Research, Inc. All rights reserved.
Thank you for signing up
for Reorg on the Record!