FCC Seeks Comment on Sinclair/Tribune

The FCC put Sinclair’s amendments to its proposed buy of Tribune out for public comment, said a public notice Monday. With the final deadline July 12, the transaction likely wouldn’t be voted on before August or September, communications attorneys told us. A U.S. Court of Appeals for the D.C. Circuit decision that could knock down the UHF discount is expected around then.

“The court has everything it needs to issue a ruling,” said deal opponent Georgetown University Institute for Public Representation co-Director Angela Campbell. Comments on Sinclair/Tribune are due June 20, replies July 5, and oppositions July 12. The deal’s 180-day shot clock remains frozen at Day 167, an FCC spokesman said. The full commission is expected to approve the buy (see 1805150076). Sinclair didn’t comment.

It’s likely the FCC will take several weeks to issue an order here, since a high volume of comments and petitions to deny the deal is likely, attorneys said. By late August or September, it becomes increasingly likely the D.C. Circuit will rule on the UHF discount, said American Cable Association Senior Vice President Ross Lieberman. ACA is a member of the deal opposition group Coalition to Save Local Media. Monday, the D.C. Circuit ruled (in Pacer) it will accept supplemental briefs supporting the FCC from Ion and other broadcasters (see 1805160066).

The FCC should wait for the court’s decision on ownership cap rules to act on the transaction, said Brian Thorn, strategic research associate at the National Association of Broadcast Employees and Technicians. The labor group is also an opponent of the deal. “We do NOT think [Chairman Ajit] Pai has sped up the Pleading period to ‘beat’ the UHF" ruling, Wells Fargo analyst Marci Ryvicker emailed investors. “Should the FCC lose the UHF case, it will likely speed up elimination of the cap -- rendering the UHF discount moot anyway.”

There's "no way" the FCC should "rush ahead now before the court acts," Commissioner Jessica Rosenworcel tweeted Monday. "The rule of law matters."

The PN announcing the comment period notes Sinclair again amended the proposed deal. A planned divestiture of KPLR-TV St. Louis to Meredith was withdrawn, and Sinclair now proposes to put two St. Louis stations involved in the deal into a divestiture trust until it can find a buyer. The trust plan will prevent that transaction from holding up the rest of the Tribune buy, said an industry official. The FCC also requested additional information on the two top-four showings in the deal, in Indianapolis and St. Louis.

"Any action on this transaction is premature until the D.C. Circuit settles a critical question impacting how big Sinclair is allowed to grow,” said the Coalition to Save Local Media. "Without the outdated and unjustified UHF discount, Sinclair and Tribune’s attempted merger will place the combined entity substantially over the national ownership cap, even under their latest proposal."