Fox, Blackstone Reportedly Teaming For Tribune Bid

(RTTNews) - Rupert Murdoch's 21st Century Fox Inc. (FOX, FOXA) and private equity firm Blackstone Group L.P. (BX) are in talks to make a joint bid for television station owner Tribune Media Co. (TRCO), according to media reports citing people familiar with the situation.

Fox and Blackstone reportedly intend to trump a rival bid for Tribune from Sinclair Broadcast Group Inc. (SBGI), the largest owner of television stations in the U.S. Sinclair is said to be looking to acquire Tribune for a price in the high $30s a share, Bloomberg reported.

According to Bloomberg and the Financial Times, Fox and Blackstone plan to form a joint venture to buy Tribune, with Blackstone providing the cash and Fox contributing its 28 owned-and-operated stations to the joint venture.

The interest in Tribune comes after the Federal Communications Commission or FCC recently eased rules that limit the number of television stations a single operator could own. Chicago, Illinois-based Tribune has a market capitalization of $3.18 billion.

Fox's broadcast network is carried by several other television stations, including those owned by Tribune. A combination of Tribune and Sinclair would give Sinclair a stronger negotiating hand with Fox about splitting fees from cable providers.

Sinclair has reportedly been looking to finalize a deal by the time Tribune reports its first-quarter earnings results during the week of May 8, according to the Bloomberg report.

Fox is currently awaiting regulatory approval for its proposed acquisition of British satellite television network Sky plc (BSY.L, SKY.L) for 11.7 billion pounds.

Texas-based broadcaster Nexstar Broadcasting Group Inc (NXST), which has 170 local television stations, is also said to be exploring an offer for Tribune.