Sinclair Broadcast Group has agreed a $3.9bn (€3.57bn) deal to acquire fellow US media group Tribune Media Company.
The two parties have entered into a definitive agreement under which Sinclair will acquire 100 per cent of the issued and outstanding shares of Tribune for $43.50 per share, for an aggregate purchase price of approximately $3.9bn, plus the assumption of approximately $2.7bn in net debt.
Tribune owns or operates 42 television stations in 33 US markets. The Recode website notes Sinclair will gain control over some key local sports rights across professional basketball, ice hockey and baseball games, including Major League Baseball franchises the Chicago Cubs and New York Yankees.
The deal marks the largest acquisition in Sinclair’s history. “This is a transformational acquisition for Sinclair that will open up a myriad of opportunities for the company,” Chris Ripley, president and chief executive of Sinclair, said.
“The Tribune stations are highly complementary to Sinclair’s existing footprint and will create a leading nationwide media platform that includes our country’s largest markets. The acquisition will enable Sinclair to build ATSC 3.0 (Next Generation Broadcast Platform) advanced services, scale emerging networks and national sales, and integrate content verticals.
“The acquisition will also create substantial synergistic value through operating efficiencies, revenue streams, programming strategies and digital platforms.”
The transaction has been unanimously approved by the boards of directors of both companies and is anticipated to close and fund in the fourth quarter of 2017. Completion of the transaction is subject to approval by Tribune’s stockholders, as well as customary closing conditions, including approval by the Federal Communications Commission, and antitrust clearance.