Takeaways
- Even though the FCC did not receive any petitions to deny Tribune/Nexstar’s divestiture applications prior to the deadline in late May, the agency kept open the pleading cycle and did not skip ahead in the review process, according to a person familiar with the FCC’s process.
- Yesterday, June 18, was the approximate deadline for replies to any oppositions to deny, had there been any petitions to deny and subsequent opposition to those petitions.
- While it is often difficult to predict when exactly the FCC will conclude any merger review, the FCC’s review is unlikely to extend into the fourth quarter, said a source close to the transaction.
Despite limited opposition to the pending Tribune/Nexstar transaction, the FCC is unlikely to finish its review of the merger until the third quarter of this year, Reorg M&A has learned.
Even though the FCC did not receive any petitions to deny Tribune/Nexstar’s divestiture applications prior to the deadline in late May, the agency kept open the pleading cycle and did not skip ahead in the review process, according to a person familiar with the FCC’s process.
The FCC set an initial deadline of May 27 for petitions to deny. However, because May 27 was a holiday, it is likely the FCC extended that deadline until May 28. This may have affected by one day the subsequent deadline of June 11 for opposition to petitions to deny, as well as the deadline of yesterday, June 18, for replies to any oppositions to deny.
During an earnings call earlier this year, Perry Sook, chairman, president and CEO of Nexstar,
speculated that the transaction could be approved by the FCC “at the end of June.” However, Sook went on to say that he was “not attempting to bind the government to that” and that Nexstar would “stand by our third quarter closing timeline.”
According to a source close to the transaction, Q2 approval was never probable or expected. Although it is often difficult to predict when exactly the FCC will conclude any merger review, the FCC’s review of the Tribune/Nexstar transaction is unlikely to extend into the fourth quarter, the source added.
Today is day 125 of the FCC’s informal 180-day clock for the Tribune/Nexstar review.
Reorg M&A’s previous coverage of this transaction can be found
HERE.
--Ryan Lynch