Sinclair Says Prepared To Resolve Any Perceived Issues On Tribune Media Merger

(RTTNews) - Sinclair Broadcast Group Inc. (SBGI) said it acknowledged a statement made by Chairman Ajit Pai of the Federal Communications Commission or "FCC", in which he announced circulation of a draft hearing designation order regarding Sinclair's pending acquisition of 100% of the issued and outstanding shares of Tribune Media Co. (TRCO). Sinclair said it is prepared to resolve any perceived issues and looks forward to finalizing its acquisition of Tribune Media. The company looks forward to working with regulators to make the merger a reality.

Sinclair said it was shocked and disappointed today by the news that FCC Chairman Pai was circulating an order proposing to designate acquisition of Tribune for an administrative hearing. Although the actual Hearing Designation Order or HDO has not yet been released, press reports indicate that a leaked version of the HDO suggests that Sinclair may have engaged in misrepresentation or lack of candor. To the extent that the HDO does in fact include any such allegations, Sinclair denied such allegations in the strongest possible manner.

Sinclair said "Throughout the FCC review process of this transaction, we have had numerous meetings and discussions with the FCC's Media Bureau to make sure that they were fully aware of the transaction's structure and basis for complying with FCC rules and meeting public interest obligations. These structures are consistent with structures that Sinclair and many other broadcasters have utilized for many years with the full approval of the FCC. During these discussions and in our filings with the FCC, we have been completely transparent about every aspect of the proposed transaction. We have fully identified who the buyers are and the terms under which stations would be sold to such buyer, including any ongoing relationship we would have with any such stations after the sales. We have filed all relevant agreements documenting such terms as required by FCC rules."

While we understand that certain parties which oppose the transaction object to certain of the buyers based on such buyers' relationships with Sinclair, a situation we are prepared to address if the FCC agrees with such views, at no time have we misled the FCC in any manner whatsoever with respect to the relationships or the structure of those relationships proposed as part of the Tribune acquisition. Any suggestion to the contrary is unfounded and without factual basis.

Sinclair noted that it was heartened by the Statement released by Commissioner O'Rielly objecting to 'blindly sending decisions to the Commission's Administrative Law Judge (ALJ).' While the company understand that Commissioner O'Rielly was specifically objecting to the lack of defined timelines in the ALJ process, the company hope that Commissioner O'Rielly and the other FCC Commissioners will also consider the appropriateness of blindly designating matters for hearing which have been fully disclosed to the FCC and which fully comply with FCC rules and widespread industry precedent.