Fox buying 7 Sinclair stations for $910 million

Fox buying 7 Sinclair stations for $910 million

Fox buying 7 Sinclair stations for $910 million

Sinclair Broadcast Group enjoyed a much-needed jolt on Wall Street today (5/9), as investors cheered the news that it is teaming with Tribune Media to sell six FOX affiliates and the CW affiliate in Miami-Fort Lauderdale to 21st Century Fox.

Sinclair's divestiture of the television stations is part of the Federal Communications Commission's regulatory approval process to clear the way for Sinclair to buy the majority of TV stations owned by Tribune Media Company based in Chicago, Illinois. These stations were among the 43 Tribune stations Sinclair sought to purchase last May.

The channels being acquired will allow Fox to gain access to important US National Football League markets, including Seattle and Denver.

"As expected and reflected in our first quarter guidance, advertising revenue was soft, largely due to the lack of Olympics and Super Bowl on many of our stations, with the auto category coming off its recent highs from previous year". "We are also happy to add many talented Tribune employees to our group, some of whom we know well". Now Fox has emerged as that buyer.

Four analysts surveyed by Zacks expected $660.3 million. Sinclair's media revenues rose 6% to $643.7 million driven by political revenues of $7 million; distribution revenues that totaled $314 million, up from $276 million one year ago; and digital revenues that increased 71%.

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