Sinclair Broadcast Group (SBGI -4.6%) and Tribune Media (TRCO -8.1%) are taking a sudden slide after a word from FCC Chairman Ajit Pai expressing "serious concerns" about the companies' planned merger.
"Based on a thorough review of the record, I have serious concerns about the Sinclair/Tribune transaction," Pai says. "I have shared with my FCC colleagues a draft order that would designate issues involving certain proposed divestitures for a hearing in front of an administrative law judge."
Certain of the divestitures in Sinclair's proposal would allow Sinclair to keep controlling those stations "in practice, even if not in name, in violation of the law," he says.
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