Sinclair’s newest divestiture plan is still a scam

Sinclair’s new divestiture plan designed to appease regulators into approving its massive acquisition of Tribune media is a lot like its first one: it’s still a scam.

While Sinclair claims it will sell 23 stations, the plan is full of problems. First, Sinclair divests at least four stations to companies with close ties to the Smith family, which owns Sinclair, essentially retaining control of these stations. Second, Sinclair doesn’t tell us who the buyers are for seven additional stations. Third, Sinclair admits it will enter into shared services agreements (SSAs) with four stations, including WGN in Chicago. SSAs are used to skirt FCC ownership rules.

Most important, Sinclair’s divestiture of only 23 stations will still leave the merged company with almost 200 stations and far in excess of the 39 percent the congressionally mandated audience reach limit.

A Sinclair behemoth will still harm local news and kill jobs. A viral video of news anchors from across the country reciting a Sinclair-authored anti-media screed illustrates how media consolidation can turn local journalists into tools for political propaganda.

“Many details and specifics of the latest divestiture plan announced by Sinclair remain unknown,” said the Coalition to Save Local Media, a politically diverse group opposed to the merger, of which NABET-CWA is a member. “But what we do know is that Sinclair admits it will plan to skirt the rules through side deals with prospective buyers instead of fully divesting stations. The number of times Sinclair has had to correct this deal shows just how much it distorts the marketplace.”

“This merger is not in the interest of consumers and would hurt local media across the country,” the coalition concluded. “We continue to call for meaningful time for review and public comment on the Sinclair-Tribune merger and for it ultimately to be denied.”

Links:

Modest divestitures aren’t enough to negate harms of Sinclair-Tribune merger (Speed Matters, Jan. 12, 2018)

Viral video shows dangers of Sinclair-Tribune merger (Speed Matters, Apr. 5, 2018)