Published:
Justice Department Denies Raycom's Sale of WTVR-TV in Richmond-Petersburg, VA to Sinclair
BALTIMORE, Aug. 27 /PRNewswire-FirstCall/ -- Sinclair Broadcast Group,
Inc. (Nasdaq: SBGI) announced today that The U.S. Department of Justice --
Antitrust Division has informed Sinclair that they are declining to approve
Sinclair as the acquirer of WTVR-TV inRichmond, VA. The denial occurred
pursuant to a Consent Decree entered into between Raycom Media, Inc., the
current owner of WTVR-TV, and the Justice Department. Under the Consent
Decree, which was entered into by Raycom in order to obtain Justice Department
approval of its earlier acquisition of three television stations from Lincoln
Financial, any potential buyer of WTVR could be rejected unilaterally by the
Justice Department without cause.
In June 2008, Sinclair announced that it had agreed to buy the assets of
WTVR-TV (CBS 6) from Raycom Media, Inc. for $85.0 million and simultaneously
sell the license assets of WRLH-TV (FOX 35) to Carma Broadcasting, LLC.
Following the sale of WRLH-TV, Sinclair would have provided sales and other
non-programming related services to WRLH-TV.
Notwithstanding the action of the Justice Department, Sinclair believes
that this proposed transaction would not have violated the anti-trust laws.
This situation, however, is unique because of the unilateral power held by the
Justice Department under the Consent Decree into which Raycom had previously
entered as part of a separate transaction. In this particular case, however,
it appears that the acquisition of WTVR-TV and the sale of the license assets
of WRLH-TV will not occur. Sinclair is continuing to explore its rights under
its asset purchase agreement with Raycom.
Sinclair Broadcast Group, Inc., one of the largest and most diversified
television broadcasting companies, owns and operates, programs or provides
sales services to 58 television stations in 35 markets after the sale.
Sinclair's television group reaches approximately 22% of U.S. television
households and is affiliated with all major networks.
SOURCE Sinclair Broadcast Group, Inc.
Copyright © 2009, PRNewswire
Copyright © 2009, NewsBlaze,
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