ROH Owners Sinclair Broadcast Group Face FCC Roadblock Over Tribune Acquisition

ROH’s chances of ending up on a larger national platform hit a snag, as Sinclair Broadcast Group’s intentions to acquire Tribune Broadcasting faces an FCC roadblock. Deadline reports that FCC Chairman Ajit Pai announced on Monday that he had “serious concerns” about SBG’s plan to acquire Tribune and would be asking commissioners to vote on sending the deal to a court hearing that would be ruled on by a judge. This would set the deal back significantly and, of course, potentially scuttle it entirely.

Pai’s concerns primarily relate to how Sinclair plans to divest some its stations, which it must do in order to meet ownership limits if it acquires Tribune. Tribune owns thirty-five network affiliates around the county, and some of those are in locations that Sinclair currently owns a competing station. SBG said they would sell twenty-three stations, but enter into agreements with the purchasing entities to continue running stations in in Chicago and New York. Pai said that would be “in practice, if not in name, in violation of the law.”

The purchase would significantly give SBG ownership of WGN America, which would be a potential national venue for the company to air ROH. While the company has never officially announced any plans, there has been long-reported discussions of ROH doing a two-hour weekly broadcast on cable, perhaps on WGN, if such a platform became available.

Both Tribune and Sinclair stocks dove following Pai’s announcement, with Tribune down 17% to $32.11 while Sinclair was down 12% to $29.10.