FCC Approves Nexstar Purchase of Tribune Stations

The FCC has approved the sale of Tribune Media broadcast stations to Nexstar Media Group.

“The Commission found that the proposed merger would provide several public interest benefits to viewers of current Tribune and Nexstar stations,” the FCC announced on Monday. “For example, viewers would benefit from their local stations having increased access to Nexstar’s Washington, DC, news bureau and state news bureaus.”

Nexstar outbid private equity firm Apollo Global Management LLC with an all-cash offer last December.

Also Read: Tribune Media Spikes $3.9 Billion Deal With Sinclair Broadcast Group, Sues for Breach of Contract

The Texas-headquartered telecommunications company already owns 174 TV networks, reaching 39% of U.S. households. Along with the 42 local networks that combine to reach 50 million homes, Tribune also has a stake in Food Network and owns WGN America, which has a reach of 77 million homes nationwide.

That means the Federal Communications Commission has also approved “the divestiture to Scripps Broadcast Holdings, LLC; TEGNA Broadcast Holdings, LLC; and CCB License, LLC of broadcast stations in certain markets necessary for Nexstar to come into compliance with the Commission’s local and national television ownership rules.”

As part of the approval, the FCC gave Nextar the go-ahead to sell off 21 stations in markets where Tribune assets would put the company over regulatory ownership limits. Nexstar has set agreements with Tegna, Scripps and Circle City Broadcasting to sell off stations.

Also Read: Nexstar to Sell 19 TV Stations, Including New York's WPIX, for $1.32 Billion in Cash

Prior to the Nextar deal, Tribune walked away from a merger with Sinclair Broadcast Group in August 2018. Tribune ended up suing Sinclair and accused the company of delaying the deal by being too aggressive with regulators. The FCC noted that Sinclair did not disclose pre-existing relationships the media group had with prospective buyers when negotiating the Tribune deal. Sinclair filed a countersuit.

The deal comes three months after Tribune terminated a planned purchase by Sinclair and suing the company, saying that Sinclair delayed the deal by being too aggressive with regulators. The FCC has also noted that Sinclair did not disclose pre-existing relationships the media group had with prospective buyers when negotiating the Tribune deal.

9 Biggest Billion-Dollar Entertainment and Media Deals in 2017 (Photos)

While all eyes were on AT&T's $85 billion acquisition of Time Warner, announced in late 2016 but facing an antitrust lawsuit from the Justice Department, there were plenty of other megadeals in media, tech and entertainment that kept investment bankers busy in 2017.

Here are some of the biggest deals of the year:
Getty Images
Disney to acquire most of 21st Century Fox for $52.4 billion

In a massive deal that could change the entertainment industry even more than AT&T-Time Warner, Disney announced plans to acquire Fox's film and TV studios and much of its non-broadcast television business, including regional sports networks and cable networks such as FX, FXX and Nat Geo. Disney would also pick up Fox’s stake in the European pay-TV giant Sky — and be better positioned to win regulatory approval to complete the acquisition of the 61 percent of the company it does not already own.
Discovery Communications agrees to buy Scripps Networks Interactive for $11.9 billion

The merger of two cable powerhouses brings together channels including Discovery, Science, Food Network and HGTV – and could give the combined company a stronger position as pay-TV continues to migrate to the internet.
Discovery/Scripps
Sinclair Broadcast Group agrees to buy Tribune Media for $3.8 billion

This deal, if approved, would give conservative-leaning Sinclair control of 223 stations in 108 markets, including 39 of the top 50, covering 72 percent of households in the country. And it's only possible under rule changes implemented by new FCC Chairman Ajit Pai.
Sinclair/Tribune
Cineworld offers to buy Regal Cinemas for more than $3 billion

After a string of movie theater mergers last year, the sector has quieted down -- along with the box office. And while this isn’t yet a done deal -- or even an accepted offer -- British chain Cineworld made a late November bid of $23 a share for the U.S.’s No. 2 cinema chain.
Cineworld/Regal
Meredith Corp. acquires Time Inc. for $2.8 billion

The magazine megadeal is a sign of changing times in the publishing industry, with the owner of esteemed brands like Time, Fortune and Sports Illustrated selling to the parent of Better Homes and Gardens and Country Life – backed by $650 million from big-time conservative donors the Koch brothers.
Meredith/Time
Verizon acquires Straight Path Communications for $2.3 billion

Straight Path may not be a household name, but it was the subject of a bidding war between AT&T and Verizon. The company is one of the largest owners of millimeter wave spectrum, seen as key to the buildout of 5G networks, which should power much faster mobile internet -- better for video -- in the near future.
Verizon/Straight Path
Disney buys the rest of BAMTech for $1.6 billion

The Mouse House jumped into internet TV in a major way in 2017, announcing upcoming Disney and ESPN-branded streaming services and acquiring the rest of streaming tech company BAMTech to power those products.
Disney/BAMTech
Entercom buys CBS Radio for $1.5 billion

CBS Radio was intended to be spun off from its broadcast parent in an IPO, but instead it was scooped up by a competitor. The combined company, now the second largest radio business in the country, owns and operates 244 stations in 47 markets.
Entercom/CBS Radio
MGM buys the rest of Epix for $1 billion

The independent studio went all in on the pay-TV business, buying the rest of the premium cable network from Viacom and Lionsgate. And that's paid immediate dividends, as MGM's media networks division propelled it to a strong third quarter.
MGM/Epix

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Rewind 2017: Media and content consolidation continued this year

While all eyes were on AT&T's $85 billion acquisition of Time Warner, announced in late 2016 but facing an antitrust lawsuit from the Justice Department, there were plenty of other megadeals in media, tech and entertainment that kept investment bankers busy in 2017.

Here are some of the biggest deals of the year:

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9 Biggest Billion-Dollar Entertainment and Media Deals in 2017 (Photos)

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