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Sinclair Broadcast Group Inc <SBGI.O> on Monday said it would
buy Tribune for about $3.9 billion, giving Sinclair a greater
foothold in big broadcast markets like New York and Chicago.
The announcement comes after the U.S. Federal Communications
Commission voted to reverse a 2016 decision that limits the
number of stations a broadcaster can buy.
The sale comes after a decade of turmoil for Tribune, which was
acquired by real estate mogul Sam Zell and then by private
equity firms.
Tribune said revenue from the television and entertainment
division, which is the company's largest by sales, fell to
$436.0 million in its first quarter ended March 31 from $455.9
million a year ago.
Tribune's net loss was $85.6 million, or 99 cents per share, in
the quarter, compared with a net income of $11.1 million, or 12
cents per share, a year earlier. The company said it recorded an
impairment charge of $122 million.
Operating revenue fell to $439.9 million from $468.5 million.
Excluding items, the company posted a loss 7 cents per share.
Analysts on average estimated earnings of 7 cents, according to
Thomson Reuters I/B/E/S.
(Reporting by Pushkala A and Rishika Sadam in Bengaluru; Editing
by Sai Sachin Ravikumar and Martina D'Couto)
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