$3.9 billion buyout of Tribune by Sinclair ends in acrimony

FILE - This Oct. 12, 2004 file photo shows Sinclair Broadcast Group, Inc.'s headquarters in Hunt Valley, Md. Tribune Media is ending its $3.9 billion deal with Sinclair Broadcast, and has filed a lawsuit against Sinclair for breach of contract. Sinclair had offered to buy Tribune's 42 TV stations. The two companies had until midnight Wednesday, Aug. 8, 2018 to call the deal off and have been facing tough regulatory challenges. (AP Photo/Steve Ruark, File) FILE - This Oct. 12, 2004 file photo shows Sinclair Broadcast Group, Inc.'s headquarters in Hunt Valley, Md. Tribune Media is ending its $3.9 billion deal with Sinclair Broadcast, and has filed a lawsuit against Sinclair for breach of contract. Sinclair had offered to buy Tribune's 42 TV stations. The two companies had until midnight Wednesday, Aug. 8, 2018 to call the deal off and have been facing tough regulatory challenges. (AP Photo/Steve Ruark, File)

By Associated Press August 9, 2018 3 min read

The $3.9 billion buyout of Tribune Media by Sinclair collapsed Thursday, ending a bid to create a massive media juggernaut that could have rivaled the reach of Fox News.

Tribune Media Co. said Thursday that it is suing Sinclair for breach of contract and at least $1 billion in damages, according to its complaint .

Sinclair used “unnecessarily aggressive and protracted negotiations” with the Department of Justice and Federal Communications Commission over regulatory requirements, the Chicago company said, and it refused to sell the stations it needed to in order to gain regulatory approval.

Sinclair Broadcast Group wanted the Chicago company’s 42 TV stations and had initially agreed to dump almost two dozen of its own to score approval by the FCC.

The media company, which has enjoyed the support of President Donald Trump, appeared to be cruising toward approval by U.S. regulators.