Sinclair Broadcast Group To Buy Tribune Media Co. For $3.9 Billion

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Sinclair Broadcast Group Inc. (NASDAQ:SBGI) will acquire fellow television broadcasting giant Tribune Media Co. (NYSE:TRCO) for $3.9 billion, the two companies announced on Monday.

The $43.50 per share buyout price represents an 8% premium over TRCO’s Friday closing price of $40.29, and a 26% premium over its last unaffected closing price back on February 28. In pursuant to the agreement, Tribune shareholders will receive $35.00 in cash and 0.23 shares of Sinclair common stock for each Sinclair share they own.

Chris Ripley, President and CEO of Sinclair, commented via press release:

“This is a transformational acquisition for Sinclair that will open up a myriad of opportunities for the company.

The Tribune stations are highly complementary to Sinclair’s existing footprint and will create a leading nationwide media platform that includes our country’s largest markets.

The acquisition will enable Sinclair to build ATSC 3.0 (Next Generation Broadcast Platform) advanced services, scale emerging networks and national sales, and integrate content verticals.

The acquisition will also create substantial synergistic value through operating efficiencies, revenue streams, programming strategies and digital platforms.”

...Year-to-date, TRCO has gained 46.67%, versus a 7.65% rise in the benchmark S&P 500 index during the same period...[and] currently has a POWR Rating of A (Strong Buy), and is ranked #2 of 10 stocks in the Entertainment – Broadcasters category.

...Year-to-date, SBGI has gained 11.29%...[and] currently has a POWR Rating of B (Buy), and is ranked #5 of 10 stocks in the Entertainment – Broadcasters category.

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