Reports: Nexstar says no to WPIX-NY, WSFL-Miami

If you want to do something well, watch someone else do it. That’s the way to improve in most skills in life.

ftvlive logo

That’s one reason I read Scott Jones’ blog, FTVLive.com. Say what you want about him or his spelling, but he’s usually right on the money when it comes to facts, and won’t make claims without backing them up. In other words, I trust what he writes.

This morning, he had two blog posts about the latest attempt to create the nation’s largest local television station owner: Nexstar Media Group’s effort to buy Tribune Media. (Last year, after a lot of opposition, Sinclair Broadcast Group was not allowed to make the purchase.)

When you get this big, things get complicated. The company gets up against against Federal Communications Commission ownership limits, as well as Department of Justice antitrust regulations.

Nexstar owns or operates 174 television stations in 100 mostly small to mid-sized TV markets, reaching nearly 38.7 percent of American households. The limit is 39 percent, and that’s with the FCC’s UHF discount, which only takes half the market’s people into account. Tribune owns or operates 42 stations, including the nation’s biggest cities.

The deal is that Nexstar will pay $4.1 billion for Tribune. Sinclair had offered $3.9 billion but according to USA Today, “breached its contract by misleading regulators during the transaction’s approval process.” Nexstar’s last major purchase was in 2017, when it bought 71 stations from Media General for $4.6 billion.

The ownership limits, which I explained in this post from last March, come into play because two large companies will already own stations in the same markets competing against each other, and will together own too many as a whole. That’s why some stations will need to be sold.

Briefly, the four categories of FCC rules are 1. national TV ownership, 2. local TV multiple ownership, 3. the number of independently owned “media voices” – 4. and at least one of the stations is not ranked among the top four stations in the DMA (that’s the “designated market area” or city, and ranking based on audience share), and at least eight independently owned TV stations would remain in the market after the proposed combination. (Keep in mind, these rules seem to get loosened every time a company comes close to hitting the limit.)

In the case of Nexstar and Tribune, there would be a long list involving about 15 cities. (Nexstar would do well by being honest in its effort to buy Tribune, as opposed to what Sinclair did and had been doing for years.)

sinclair skull and crossbones

Perry Sook, Nexstar’s president and CEO, started the company in 1996 with one station in Scranton, Pa. He has been buying ever since.

“We have no aspirations to be a national anything,” Sook said, according to Variety. “Our company goes from Burlington, Vermont to Honolulu and each of those communities have different needs and different tastes. We do three things that are vitally important: We produce local news content. We deliver entertainment and information. And we help local businesses sell stuff. Those are our reasons to exist.”

That’s contrary to Sinclair, which was reportedly interested in creating a national news network and using must-runs on its stations to spread its ownership’s conservative beliefs.

feature nexstar wpix wsfl

Anyway, this morning, Scott wrote,

“Sources tell FTVLive that Nexstar is not planning on keeping WPIX in New York City after it purchases the station as part of the Tribune deal.”

So if Nexstar pretty-much owns so many stations in small to mid-sized TV markets, and claims to be solely interested in local broadcasting (while probably taking advantage of some scale), why leave out a station in the #1 TV market in the country, which itself broadcasts to about a whopping six percent of American households?

WPIX

According to Scott,

“The spinning off of WPIX will help bring Nexstar under the ownership cap and it will likely put a lot of money back into the Nexstar back account.”

I’d rather see competition remain in New York. I can’t imagine Nexstar losing the power of selling ads on stations in every one of the biggest, influential, most lucrative cities (New York, Los Angeles, Chicago, Philadelphia, San Francisco, Washington, etc.). And it could probably make money selling off many of its smaller market stations, have fewer people doing the same jobs on payroll, pay less for benefits like health insurance, have less regulatory paperwork to do, etc. But it could possibly achieve what Scott suggested in just one move.

Instead of Nexstar, I dread a New York competitor coming in and gutting WPIX’s news department, which has grown over the years from 30 minutes at 7:30pm and an hour at 10, to include morning and early evening news.

Among competitors, WCBS already owns WLNY (Long Island). WNBC already owns WNJU (Telenundo). WNYW (Fox) bought WWOR and got rid of its news department. That pretty much leaves WABC, which is said to be in the buying mood since owner Disney hasn’t bought stations in years, is not up against ownership limits, and has been said to be interested in Cox’s stations (especially its ABC affiliates in Atlanta, Orlando and Charlotte). A duopoly in New York would be good for WABC, but not the public, which owns the airwaves. But considering the other major stations already own second stations in the Big Apple, could WABC be refused?

disney abc logo

Of course, Disney/ABC is already buying most of 21st Century Fox’s assets, including its TV and movie studios, and cable channels except news and business, for $71 billion. The New York Post reports the closing is expected in February or March, and Sinclair may end up buying Fox’s regional sports networks which Disney can’t keep (it already owns ESPN) and nobody else seems to want them.

The so-called New Fox would consist only of its TV stations, and its news and business cable channels. (Comcast/NBC wanted Fox’s entertainment assets but Disney/ABC offered more. Comcast is ending up with Fox’s share of European telecommunications and pay-TV giant Sky.)

Scott also wrote,

“Along with spinning off WPIX in New York, Nexstar plans on selling off WSFL, the Tribune station in Miami.”

We’ve been through this before. Fox has a great Miami affiliate, WSVN, which is owned by Ed Ansin’s Sunbeam Television Corporation. In the 1980s, he wouldn’t sell to then-affiliate partner NBC, so the peacock bought WTVJ in early 1987 and took away WSVN’s #1 primetime programming on Jan. 1, 1989. WSVN became a Fox affiliate on the few days the new network broadcast back then and put its future into local news, more sensational back then, which has worked out well.

WHDH logo 4Then, just a few years ago, the same thing happened with Sunbeam’s WHDH in Boston. Ansin refused to sell to NBC so the peacock invented a station pretty much from scratch to put its programming. Since Boston already had a Fox affiliate (Miami’s went to CBS in 1989), WHDH is now completely independent, without a network, and worth much less.

Fox TV stationsSo Fox has been selling off assets but is interested in buying TV stations (it had a deal to buy several from Sinclair after its merger with Tribune, which ended up falling through) and rights to live programming, especially sports and especially the National Football League. In the past, Fox wanted stations in cities with NFC teams because it broadcasts NFC team away games on Sunday afternoons. Then, it bought the rights to Thursday Night Football, which includes the whole league, so now it’s interested in stations in cities with AFC teams, like the Miami Dolphins.

I’ve shown you how networks have dumped highly-rated, loyal, long-time affiliate stations and went all-out to own stations in cities around the country, even if it meant starting a news department from nothing, which is exactly what WSFL has when it comes to news.

Why would Nexstar sell Tribune’s only Florida station when it doesn’t have much to show for itself in the Sunshine State? Good question! Nexstar only owns WFLA in Tampa, WKRG in Mobile/Pensacola and WMBB in Panama City. Maybe it knows it could get a great deal from Fox (perhaps part of a multi-station deal where Nexstar and Tribune have too many stations competing), or it knows global warming will have Florida under water sooner rather than later.

 

One thing I disagree on with Scott about Fox possibly buying WSFL is that WSVN would probably not exchange affiliations with that current CW affiliate and become the new one. That’s because CBS is a part owner of The CW and that affiliation would likely go to its second Miami station, WBFS, which would probably mean WSVN ends up with WBFS’ MyNetworkTV affiliation.

On the other hand, Philadelphia MyNetworkTV affiliate WPHL (owned by Tribune) airs off-network syndicated reruns from 8 to 10pm (a great idea!) and its MyNetworkTV obligations (pretty much syndicated dramas) air overnight. It also got rid of the “My” on its logo.

That’s the case because I verified WBFS-Miami and WWOR-New York air the same shows from 8 to 10pm (and Fox owns both WWOR and MyNetworkTV, so the shows will definitely run in pattern).

wphl wbfs wwor

Anson’s WHDH – which has been independent for two years – airs Family Feud for an hour at 8 and local news from 9 to 11:35pm. So there are alternatives.

What’s going to happen? Are the reports from Scott true? If so, are they subject to change?

Again, we’ll have to sit back on our couches, and wait and see.

Disappointing news and news coverage

Last night, a woman was shot to death two blocks from my parents (and where I lived from the end of kindergarten, to leaving WSVN and moving to Connecticut, minus my three college years). It happened at about 5pm. I found out when my sister-in-law sent me a TV station’s screen-grab.

Turns out, the victim was a well-known real estate agent, who’d had her face and her dog’s on many bus benches while I was growing up. It happened outside her daughter’s house (same high school, two years older) and the gunman was her estranged son-in-law, who later killed himself.

In the early evening, between 7:30 and 8:30pm, I couldn’t find anything on WSVN’s website, and nonsense with very few facts from the network-owned stations.

WTVJ was a block off and WFOR had no location.

WPLGWPLG had the best coverage, with the right block, and video with a reporter at the scene during its newscast which ended at 6:30. But supposedly, the latest was on a different reporter’s personal, private Facebook page. We never met, but I went to school with his brother years ago, so he’s from the area and has contacts. I found out about his Facebook coverage when I got a call from one of our dozens of mutual friends (28, to be exact), and asked him about it – on Facebook.

Me: “Why did you put Highland Lakes shooting privately on your personal page, but not on your professional page for any interested parties?”

Him: “The station posts on my public”

Me: “I’m sorry. That sucks.”

Him: “Ok sorry”

Me: “I meant for you. I’m sure not everything they’ve posted has been perfect, or the way you would have.”

He doesn’t know what I do and have done for a living, and you see he didn’t realize I felt sorry for him apparently not being able to publish on social media pages that have his name and picture, and depending on others to do it right! His public Facebook page hasn’t been used in almost a month, and his work Twitter account was only used sporadically, not a few times daily like someone with contacts who goes out in the field, working to uncover facts – or simply a trusted reporter who watches the news and has followers who depend on him.

We know people on-air are not decision-makers but they should be trusted to publish on pages with their names and pictures, along with certain folks in the newsroom. Those people on-air with their names and pictures online will probably be the best at making sure what’s reported there is accurate and presented properly.

Who else would care as much?

If you appreciate what you read here, subscribe with either your email address or WordPress account, and get a notice whenever I publish. Don’t rely on social media with its hacking issues and censoring like thisthisthis and this. (I explained the reason for the fourth “this” in my last post.) I just became certified as an IT Support Specialist and am also available for writing/web contract work. LinkedIn: https://www.linkedin.com/in/lennycohen

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Tribune to Sinclair: Judge’s gavel instead of merger’s handshake

It’s a great day in broadcasting, or as great as things can get in this day and age. There will be no merger between Sinclair Broadcast Group and Tribune Media.

Today, according to Axios, Tribune announced it

“terminated its $3.9 billion merger agreement with Sinclair Broadcasting and that it has filed a lawsuit for breach of contract.”

— UPDATE: Sinclair counter-suing Tribune, accusing its onetime takeover target of a “deliberate effort to exploit and capitalize on an unfavorable and unexpected reaction from the FCC to capture a windfall.” —

Tribune sued in Delaware Chancery Court. It’s asking for “approximately $1 billion of lost premium to Tribune’s stockholders and additional damages in an amount to be proven at trial,” according to TVNewsCheck.

The Wall Street Journal reported Tribune alleges Sinclair “failed to make sufficient efforts to get their $3.9 billion deal approved by regulators.”

The first sign of trouble from the Federal Communications Commission, other than delays, came last month. It was a surprise, considering how the FCC greased the wheels for the takeover, whether on purpose or not. (That’s under investigation.)

— UPDATE: The FCC inspector general cleared Chairman Ajit Pai of being unfairly biased in favor of the Sinclair Broadcast Group–Tribune Media merger. —

TVNewsCheck continued,

“Tribune claimed that Sinclair used ‘unnecessarily aggressive and protracted negotiations’ with the Department of Justice and the FCC over regulatory requirements and that it refused to sell the stations it needed to in order for regulatory approval.”

In the filing, Tribune said:

“Beginning in November 2017, DOJ repeatedly told Sinclair that it would clear the merger if Sinclair simply agreed to sell stations in the 10 markets the parties had identified in the merger agreement. DOJ’s message to Sinclair could not have been clearer: if Sinclair agreed to sales in those 10 markets, ‘We would be done.’”

That’s what happens when you get into business with a company like Sinclair. I’ve written plenty about it and its top officials, including those who inherited the company.

Personally, it proves what I wrote here on July 25,

“Even better, it looks like one of the seven deadly sins – greediness – may have killed the deal!”

The deal, while complex and controversial, should not have been a problem.

The biggest hurdle was supposed to be national ownership rules, but ironically, the FCC took care of that just weeks before the deal’s May 2017 announcement.

Bloomberg reported,

“Broadcasters may own stations that reach 39 percent of U.S. households – but how that audience is measured has been in dispute. Last year, the FCC’s Republican majority reinstated a measure that treats ultra-high-frequency or UHF band stations as counting for just half of their lower-frequency counterparts, enabling broadcasters to own more stations and enjoy greater reach.”

Democrats had gotten rid of the so-called UHF discount the year before, since it started way back at a time when there where major reception differences between VHF and UHF stations on your television dial.

“FCC Chairman Ajit Pai, a Republican appointed by President Donald Trump,” is even under investigation by his own agency’s inspector general because of the timing of the reinstatement and whether it was done for Sinclair.

But still, the deal would’ve been so big that some stations would have to go, and that’s what led to problems. Specifically, it was which stations the combined Sinclair-Tribune would own, would have to go.

Sinclair and Tribune are two of the country’s largest broadcasters.

Sinclair, the largest, claims it “owns, operates and/or provides services to 191 television stations in 89 markets.”

According to TVSpy,

“Sinclair was proposing to control 233 stations in 108 markets, adding 42 Tribune stations to their current roster.”

sinclair before tribune
Sinclair’s reach, without Tribune

That would’ve included the nation’s biggest TV markets where Sinclair has no presence, like New York, Los Angeles, Chicago and Philadelphia.

But there was a lot of pushback from public interest groups fighting for smaller companies and localism, and against micromanaging the largest group of stations in the country.

Boris Epshteyn clip art

They were joined by Democrats concerned Sinclair would give even more stations its conservative bent. Sinclair requires so-called must-runs, including airing commentaries by one of President Trump’s former communications spokespersons, Boris Epshteyn. The company also forced anchors at their stations to read a message that parroted President Trump’s talking points about the media.

jared kushnerAnd President Trump’s son-in-law and advisor Jared Kushner said Sinclair executives worked with the campaign to spread pro-Trump messages in Sinclair newscasts when he was running against Hillary Clinton, which Sinclair vehemently denied.

Plus, conservative media outlets were afraid Sinclair would get in the game and interfere with their efforts to compete with Fox News. And all the time passing didn’t help Sinclair’s case.

Meanwhile, Sinclair defended the merger as necessary consolidation in the face of competition from cable and tech, according to NBC News.

The network also reported it came “in the face of opposition from the FCC and questions about whether Sinclair tried to mislead the government with its divestiture plan, in which it sought to sell some stations to parties close to Sinclair.” (I’ve written about these so-called sidecar agreements time and time again.)

The first sign of trouble, other than delays, came last month.

TVNewsCheck wrote Pai, perhaps the deal’s biggest cheerleader after President Trump, decided he had “serious concerns” about the Tribune stations Sinclair would get in Chicago, Dallas and Houston – that Sinclair might still be able to operate them “in practice, even if not in name.”

WGN-TV

TVSpy put it this way:

“Pai suggested Sinclair would sell but still operate those stations, which is illegal. The FCC then sent the deal for review by an administrative law judge.”

Sinclair has been known to use shell corporations, local marketing agreements and joint sales agreements to operate stations it doesn’t own. (See Cunningham Broadcasting, for example. Click here for Baltimore and here for mid-Michigan.)

There were also concerns about spinning off stations for unreasonably low prices.

Tribune’s complaint alleges

“Sinclair’s material breaches were willful breaches of the merger agreement, because they were deliberate acts and deliberate failures to act that were taken with the actual knowledge that they would or would reasonably be expected to result in or constitute a material breach.

“As a result of Sinclair’s breaches, Tribune has sustained financial harm and has lost the expected benefits of the merger agreement.”

As I wrote here on July 27, “Tribune can leave Sinclair at the alter/chuppah on Aug. 8.” That was yesterday.

This morning, Tribune released this statement:

“Tribune Media Company today announced that it has terminated its merger agreement (the ‘Merger Agreement’) with Sinclair Broadcast Group, Inc. (‘Sinclair’), and that it has filed a lawsuit in the Delaware Chancery Court against Sinclair for breach of contract. The lawsuit seeks compensation for all losses incurred as a result of Sinclair’s material breaches of the Merger Agreement.

“In the Merger Agreement, Sinclair committed to use its reasonable best efforts to obtain regulatory approval as promptly as possible, including agreeing in advance to divest stations in certain markets as necessary or advisable for regulatory approval. Instead, in an effort to maintain control over stations it was obligated to sell, Sinclair engaged in unnecessarily aggressive and protracted negotiations with the Department of Justice and the Federal Communications Commission (the ‘FCC’) over regulatory requirements, refused to sell stations in the markets as required to obtain approval, and proposed aggressive divestment structures and related-party sales that were either rejected outright or posed a high risk of rejection and delay—all in derogation of Sinclair’s contractual obligations. Ultimately, the FCC concluded unanimously that Sinclair may have misrepresented or omitted material facts in its applications in order to circumvent the FCC’s ownership rules and, accordingly, put the merger on indefinite hold while an administrative law judge determines whether Sinclair misled the FCC or acted with a lack of candor. As elaborated in the complaint we filed earlier today, Sinclair’s entire course of conduct has been in blatant violation of the Merger Agreement and, but for Sinclair’s actions, the transaction could have closed long ago. (I highlighted that last sentence. —Lenny)

“‘In light of the FCC’s unanimous decision, referring the issue of Sinclair’s conduct for a hearing before an administrative law judge, our merger cannot be completed within an acceptable timeframe, if ever,’” said Peter Kern, Tribune Media’s Chief Executive Officer. ‘This uncertainty and delay would be detrimental to our company and our shareholders. Accordingly, we have exercised our right to terminate the Merger Agreement, and, by way of our lawsuit, intend to hold Sinclair accountable.’”

(Tribune’s statement continued with earnings information and then returned to the Sinclair situation. See that at the bottom of this post, along with its CEO’s memo to employees.)

That’s a big change from exactly three weeks ago, July 19, when Tribune responded to the FCC issuing its Hearing Designation Order with this statement:

“Tribune Media has now had the opportunity to review the FCC’s troubling Hearing Designation Order.  We are currently evaluating its implications and assessing all of our options in light of today’s developments.

“We will be greatly disappointed if the transaction cannot be completed, but will rededicate our efforts to running our businesses and optimizing assets.  Thanks to the great work of our employees, we are having a strong year despite the significant distraction caused by our work on the transaction and, thus, are well-positioned to continue maximizing value for our shareholders going forward.”

Click here for the 62-page complaint.

In case you don’t plan to read it all, The Washington Post reported Tribune accused Sinclair of

“engaging in ‘belligerent and unnecessarily protracted negotiations’ with the FCC as well as the Justice Department.” Also, it argued “in its lawsuit that Sinclair had been ‘confrontational with and belittling of DOJ staff.’ During negotiations, for example, Sinclair’s general counsel, Barry Faber, challenged the Justice Department’s top antitrust official, Makan Delrahim, telling him at one point, ‘sue me,’ Tribune alleged. In another meeting, Faber accused Delrahim of ‘misunderstand[ing] the industry,’ the suit said.”

Also new, The Post reported Tribune alleged it threatened to sue Sinclair in February if it didn’t divest stations to secure the DOJ’s support, prompting Sinclair to revise its offer.

Click here for 176 pages of exhibits.

Sinclair, for its part, put out this response:

“Sinclair Broadcast Group, Inc. announced today that it received a termination notice of its Merger Agreement from Tribune Media Company. In response, the Company subsequently has withdrawn with prejudice its FCC applications to acquire Tribune and filed with the Administrative Law Judge a notice of withdrawal of the applications and motion to terminate the hearing.” ‘’

“‘We are extremely disappointed that after 15 months of trying to close the Tribune transaction, we are instead announcing its termination,’ commented Chris Ripley, President & Chief Executive Officer. ‘We unequivocally stand by our position that we did not mislead the FCC with respect to the transaction or act in any way other than with complete candor and transparency. As Tribune, however commented, in their belief, the FCC’s recent designation of the deal for a hearing in front of an Administrative Law Judge would have resulted in a potentially long and burdensome process and, therefore, pursuing the transaction was not in the best interest of their company and shareholders. As for Tribune’s lawsuit, we fully complied with our obligations under the merger agreement and tirelessly worked to close this transaction. The lawsuit described in Tribune’s public filings today is entirely without merit, and we intend to defend against it vigorously.

“‘Nonetheless, we wish to thank both our and Tribune’s employees and our many advisers who have committed a tremendous amount of time and effort over the past 15 months towards the acquisition of Tribune. It is unfortunate that those efforts have not been realized. The combined company would have benefited the entire broadcast industry and the public through the advancement of ATSC 3.0, increased local news and enhanced programming.’”

FTVLive’s Scott Jones brought more from Ripley.

Chris Ripley statement

Despite Sinclair stock starting lower today, the company announced it’s buying back up to $1 billion of its Class A common shares.

“We strongly believe in the long term outlook of our company and disagree with the market’s current discounted view on our share price,” Ripley said. “The $1 billion authorization does not use our future free cash flow generation, but simply the excess cash currently on our balance sheet.”

Sinclair stock ended the day 2.58 percent higher, but fell in after-hours trading.

The FCC did not comment today.

The Sinclair-Tribune deal would’ve led to several others. Stations that put the combination above the legal ownership limit were supposed to be spun off to several different companies. Now they won’t.

One of those companies is 21st Century Fox, which The Hollywood Reporter described as partially merging with Disney/ABC. Disney still plans to buy “the Fox film and TV studio, Nat Geo, FX Networks, Star India, 39 percent of Sky and 30 percent of Hulu … along with 22 regional sports networks (RSNs).”

Disney is selling those regional sports networks because the Justice Department was worried they “coupled with ESPN would create a sports monopoly.”

Yahoo! Finance reports Disney will have 90 days from the deal closing to sell, and CEO Bob Iger said on Tuesday’s earnings call,

“The RSNs will be sold, and the process of selling them is actually already beginning. Conversations are starting, interest is being expressed. And it’s likely that we’ll negotiate a deal to sell them but the deal will not be fully executed or close until after the overall deal for 21st Century Fox closes.”

It added, Iger said Disney “assumed the responsibility of divestiture” in December 2017 when it first made an offer to Fox, “if the regulatory process demanded that we do that.”

There was never a possibility Fox would keep the networks or buy them back.

Yahoo! suggests potential buyers are Comcast, which has its own RSNs and lost the bidding war for Fox’s assets; Discovery Communications; AT&T, owner of DirecTV and now also Time Warner, but the Justice Department is appealing that; Verizon, owner of Fios; and another cable company, Charter Communications.

So Fox will be left with “the Fox broadcast network, FS1, FS2, Fox Business Network and the Fox News Channel, which, collectively, is known for now as New Fox,” according to The Hollywood Reporter.

It planned to buy some of those stations that had to be spun off from the Sinclair-Tribune deal, probably insisting on the number and places (NFL football markets), or threatening to pull the stations’ affiliations and put Fox programming on a competitor.

“Live sports is clearly the most valuable content in our industry,” executive chairman Lachlan Murdoch said during a conference call, yesterday. His company is now paying a fortune for rights to Thursday Night Football.

Thursday Night Football logo

But now, with no merger, the station sales to Fox and others are in jeopardy, and decisions whether to sell or not return to Sinclair and Tribune.

However, new deals may already be in the works. Just Monday, Tribune announced it

“reached a comprehensive agreement with Fox Broadcasting Company to renew the existing Fox affiliations of eight Tribune Media television stations, including KCPQ-TV (Seattle), KDVR-TV (Denver), WJW-TV (Cleveland), KTVI-TV (St. Louis), WDAF-TV (Kansas City), KSTU-TV (Salt Lake City), WITI-TV (Milwaukee), WGHP-TV (Greensboro, NC). Terms of the agreement were not disclosed.”

So we can expect those stations to keep airing Fox programming unless there’s something in the “terms of the agreement” that mentions the merger not happening.

On top of that, last week, FTVLive’s Scott Jones reported, “Fox is very interested in a number of the Tribune stations” – still – and, “the suits from Fox have been spotted inside (those) Tribune stations looking around” as if to buy. So we’ll see if it ends up with more Tribune stations than it was expected to buy under the deal.

Fox WSFL WSVN

Not mentioned is Miami/Fort Lauderdale Tribune station WSFL. That CW affiliate was going to be sold to Fox, even though Fox has an affiliation agreement with Sunbeam’s WSVN in South Florida. What would’ve happened if Fox bought a competitor was anyone’s guess, but that’s now a moot point.

Of course, the big question is whether Tribune will still sell at all. TVNewsCheck’s Harry Jessell reported Tribune CEO Peter Kern cast some doubt on that today, telling analysts the company may want to “enhance” its TV station portfolio.

cox media group

We know Cox Media Group is exploring selling. Others will if the price is right, and prices should rise if there are fewer, bigger companies in the business – especially if they’re allowed to buy more after the FCC takes another look at raising ownership caps.

Despite uncertainty, there’s probably a lot of relief at Tribune stations they won’t have bosses from Sinclair.

TVNewsCheck’s Harry Jessell – who I quote a lot – recently wrote

“how Sinclair’s aggressive approach in its dealing with the Justice Department and the FCC with regard to its merger with Tribune has been polluting the best regulatory atmosphere in Washington since the Reagan administration.”

Jessell ended his column by writing,

“So, let’s recap. Sinclair’s attempt to win regulatory approval of its Tribune merger has so far severely damaged Sinclair’s standing at the FCC, aggravated the most broadcast-friendly FCC chairman in decades, subjected its own and several other broadcast groups’ basic business dealings to intense Justice Department scrutiny and exposed those same groups to (an antitrust) lawsuit that, no matter how frivolous, needs to be answered.”

As promised earlier, this is the rest of today’s Tribune statement:

RECENT DEVELOPMENTS

Sinclair Acquisition

On May 8, 2017, the Company entered into the Merger Agreement with Sinclair, providing for the acquisition by Sinclair of all of the outstanding shares of the Company’s Class A common stock and Class B common stock by means of a merger of Samson Merger Sub Inc., a wholly owned subsidiary of Sinclair, with and into Tribune Media Company (the “Merger”), with the Company surviving the Merger as a wholly owned subsidiary of Sinclair.

In the Merger, each share of the Company’s common stock would have been converted into the right to receive (i) $35.00 in cash, without interest and less any required withholding taxes, and (ii) 0.2300 of a share of Class A common stock of Sinclair.

The consummation of the Merger was subject to the satisfaction or waiver of certain important conditions, including, among others: (i) the approval of the Merger by the Company’s stockholders, (ii) the receipt of approval from the FCC and the expiration or termination of the waiting period applicable to the Merger under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”) and (iii) the effectiveness of a registration statement on Form S-4 registering the Sinclair Common Stock to be issued in connection with the Merger and no stop order or proceedings seeking the same having been initiated by the Securities and Exchange Commission (the “SEC”).

Pursuant to Section 7.1(e) of the Merger Agreement, Sinclair was “entitled to direct, in consultation with the Company, the timing for making, and approve (such approval not to be unreasonably withheld) the content of, any filings with or presentations or submissions to any Governmental Authority relating to this Agreement or the transactions contemplated hereby and to take the lead in the scheduling of, and strategic planning for, any meetings with, and the conducting of negotiations with, Governmental Authorities relating to this Agreement or the transactions contemplated hereby.” Applications to regulatory authorities made jointly by Sinclair and Tribune in connection with the Merger were made at the direction of Sinclair pursuant to its authority under this provision of the Merger Agreement.

On September 6, 2017, Sinclair’s registration statement on Form S-4 registering the Sinclair Common Stock to be issued in the Merger was declared effective by the SEC.

On October 19, 2017, holders of a majority of the outstanding shares of the Company’s Class A Common Stock and Class B Common Stock, voting as a single class, voted on and approved the Merger Agreement and the transactions contemplated by the Merger Agreement at a duly called special meeting of Tribune Media Company shareholders.

The applications seeking FCC approval of the transactions contemplated by the Merger Agreement (the “Applications”) were filed on June 26, 2017, and the FCC issued a public notice of the filing of the Applications and established a comment cycle on July 6, 2017. Several petitions to deny the Applications, and numerous other comments, both opposing and supporting the transaction, were filed in response to the public notice. Sinclair and the Company jointly filed an opposition to the petitions to deny on August 22, 2017 (the “Joint Opposition”). Petitioners and others filed replies to the Joint Opposition on August 29, 2017. On September 14, 2017, the FCC’s Media Bureau issued a Request for Information (“RFI”) seeking additional information regarding certain matters discussed in the Applications. Sinclair submitted a response to the RFI on October 5, 2017. On October 18, 2017, the FCC’s Media Bureau issued a public notice pausing the FCC’s 180-day transaction review “shot-clock” for 15 days to afford interested parties an opportunity to comment on the response to the RFI. On January 11, 2018, the FCC’s Media Bureau issued a public notice pausing the FCC’s shot-clock as of January 4, 2018 until Sinclair has filed amendments to the Applications along with divestiture applications and the FCC staff has had an opportunity to review any such submissions. On February 20, 2018, the parties filed an amendment to the Applications (the “February 20 Amendment”) that, among other things, (1) requested authority under the FCC’s “Local Television Multiple Ownership Rule” (the “Duopoly Rule”) for Sinclair to own two top four rated stations in each of three television markets (the “Top-4 Requests”) and (2) identified stations (the “Divestiture Stations”) in 11 television markets that Sinclair proposed to divest in order for the Merger to comply with the Duopoly Rule and the National Television Multiple Ownership Rule. Concurrently, Sinclair filed applications (the “Divestiture Trust Applications”) proposing to place certain of the Divestiture Stations in an FCC-approved divestiture trust, if and as necessary, in order to facilitate the orderly divestiture of those stations following the consummation of the Merger. On February 27, 2018, in furtherance of certain undertakings made in the Applications and the February 20 Amendment, the parties filed separate applications seeking FCC approval of the sale of Tribune’s stations WPIX-TV, New York, New York, and WGN-TV, Chicago, Illinois, to third-party purchasers. On March 6, 2018, the parties filed an amendment to the Applications that, among other things, eliminated one of the Top-4 Requests and modified the remaining two Top-4 Requests. Also on March 6, 2018, the parties modified certain of the Divestiture Trust Applications. On April 24, 2018, the parties jointly filed (1) an amendment to the Applications (the “April 24 Amendment”) that superseded all prior amendments and, among other things, updated the pending Top-4 Requests and provided additional information regarding station divestitures proposed to be made by Sinclair in 15 television markets in order to comply with the Duopoly Rule or the National Television Multiple Ownership Rule, (2) a letter withdrawing the Divestiture Trust Applications and (3) a letter withdrawing the application for approval of the sale of WPIX-TV to a third-party purchaser. In order to facilitate certain of the compliance divestitures described in the April 24 Amendment, between April 24, 2018 and April 30, 2018, Sinclair filed applications seeking FCC consent to the assignment of license or transfer of control of certain stations in 11 television markets.

On May 8, 2018, the Company, Sinclair Television Group, Inc. (“Sinclair Television”) and Fox Television Stations, LLC (“Fox”) entered into an asset purchase agreement (the “Fox Purchase Agreement”) to sell the assets of seven network affiliates of Tribune for $910.0 million in cash, subject to post-closing adjustments. The network affiliates subject to the Fox Purchase Agreement are: KCPQ (Tacoma, WA); KDVR (Denver, CO); KSTU (Salt Lake City, UT); KSWB-TV (San Diego, CA); KTXL (Sacramento, CA); WJW (Cleveland, OH); and WSFL-TV (Miami, FL). The closing of the sale pursuant to the Fox Purchase Agreement (the “Closing”) was subject to approval of the FCC and clearance under the HSR Act, as well as the satisfaction or waiver of all conditions of the consummation of the Merger, which was scheduled to occur immediately following the Closing.

On May 14, 2018, Sinclair and Tribune filed applications for FCC approval of additional station divestitures to Fox pursuant to the Fox Purchase Agreement. On May 21, 2018, the FCC issued a consolidated public notice accepting the divestiture applications filed between April 24, 2018 and May 14, 2018, for filing and seeking comment on those applications and on the April 24 Amendment, and establishing a comment cycle ending on July 12, 2018.

On July 16, 2018, the Chairman of the FCC issued a statement that he had “serious concerns about the Sinclair/Tribune transaction” because of evidence suggesting “that certain station divestitures that have been proposed to the FCC would allow Sinclair to control [the divested] stations in practice, even if not in name, in violation of the law,” and that he had circulated to the other Commissioners “a draft order that would designate issues involving certain proposed divestitures for a hearing in front of an administrative law judge.”

On July 18, 2018, at the direction of Sinclair pursuant to its authority under the Merger Agreement, Sinclair and Tribune jointly filed an amendment to the Applications reflecting that the applications for divestiture of WGN-TV (Chicago), KDAF (Dallas), and KIAH (Houston) filed in connection with the April 24 Amendment were being withdrawn, that WGN-TV would not be divested, and that KDAF and KIAH would be placed in a divestiture trust pending sales to one or more new third parties. The applications for divestiture of WGN-TV, KDAF and KIAH were withdrawn by concurrent letter filings. On July 19, 2018, the FCC released a Hearing Designation Order (“HDO”) referring the Applications to an FCC Administrative Law Judge (“ALJ”) for an evidentiary hearing to resolve what the FCC concluded are “substantial and material questions of fact” regarding (1) whether Sinclair was the real party-in-interest to the divestiture applications for WGN-TV, KDAF, and KIAH, and, if so, whether Sinclair engaged in misrepresentation and/or lack of candor in its applications with the FCC; (2) whether consummation of the merger would violate the FCC’s broadcast ownership rules; (3) whether grant of the Applications would serve the public interest, convenience, and/or necessity; and (4) whether the Applications should be granted or denied. The HDO designated as parties to the proceeding the FCC’s Enforcement Bureau and persons who had filed formal petitions to deny the Applications, and directed the ALJ to establish a procedural schedule by Friday, August 24, 2018.

On August 2, 2017, the Company received a request for additional information and documentary material, often referred to as a “second request”, from the United States Department of Justice (the “DOJ”) in connection with the Merger Agreement. The second request was issued under the HSR Act. Sinclair received a substantively identical request for additional information and documentary material from the DOJ in connection with the transactions contemplated by the Merger Agreement. The parties entered into an agreement with the DOJ on September 15, 2017 by which they agreed not to consummate the Merger Agreement before certain dates related to their certification of substantial compliance with the second request (which occurred in November 2017) and to provide the DOJ with 10 calendar days’ notice prior to consummating the Merger Agreement. Although Sinclair and DOJ reached agreement on a term sheet identifying the markets in which stations would have to be divested, they did not reach a definitive settlement and their discussions on significant provisions remained ongoing as of August 2018.

Pursuant to the Merger Agreement, the Company had the right to terminate the Merger Agreement if Sinclair failed to perform in all material respects its covenants, and such failure was not cured by the end date of August 8, 2018. Additionally, either party may terminate the Merger Agreement if the Merger is not consummated on or before August 8, 2018 (and the failure for the Merger to have been consummated by such date was not primarily due to a breach of the Merger Agreement by the party terminating the Merger Agreement). On August 9, 2018, the Company provided notification to Sinclair that it had terminated the Merger Agreement, effective immediately, on the basis of Sinclair’s willful and material breaches of its covenants and the expiration of the second end date thereunder. In connection with the termination of the Merger Agreement, on August 9, 2018, the Company provided notification to Fox that it has terminated the Fox Purchase Agreement, effective immediately. Under the terms of each of the Merger Agreement and the Fox Purchase Agreement, no termination fees are payable by any party.

On August 9, 2018, the Company filed a complaint in the Chancery Court of the State of Delaware against Sinclair, alleging breach of contract under the Merger Agreement. The complaint alleges that Sinclair willfully and materially breached its obligations under the Merger Agreement to use its reasonable best efforts to promptly obtain regulatory approval of the Merger so as to enable the Merger to close as soon as reasonably practicable. The lawsuit seeks damages for all losses incurred as a result of Sinclair’s breach of contract under the Merger Agreement.

This is Tribune CEO Kern’s memo to employees, thanks again to FTVLive’s Scott Jones:

Tribune Team,

Earlier this morning we announced the termination of our proposed merger with Sinclair and that we have filed a lawsuit against Sinclair for breach of contract—attached (above —Lenny) is the press release we issued a short time ago.

Given the developments of the last few weeks, and the decision by the Federal Communications Commission to refer certain issues to an administrative law judge in light of Sinclair’s conduct, it’s highly unlikely that this transaction could ever receive FCC approval and be completed, and certainly not within an acceptable timeframe. This delay and uncertainty would be detrimental to our company, to our business partners, to our employees and to our shareholders. Accordingly, our Board made the decision to terminate the merger agreement with Sinclair to enable us to refocus on our many opportunities to drive the company forward and enhance shareholder value.

As for the lawsuit, we are confident that Sinclair did not live up to its obligations under the merger agreement and we intend to hold them accountable. A suit like this does not get resolved overnight and it is the last thing you should be thinking about, but I want you to know that Tribune did everything it was supposed to do, and we will make sure we are treated fairly.

Right now, I am sure many of you are still absorbing the news and wondering what it means for our company, for our future, and most especially for each of you. I want to take a moment to answer these questions and address some of your concerns as we now re-adjust to the old normal of running our great and storied Tribune Media Company.

So, let’s begin there—Tribune Media remains as strong as ever, with great TV stations, important local news and sports programming, a re-energized and financially powerful cable network, and a terrific history of serving our viewers, our advertisers, and our MVPD and network partners. You need look no further than the exceptional financial results we released today for proof of that. Our consistent success is directly related to your talent, your experience, your innovation, and your willingness to give your best every day.

As for the future, we continue to live in complex times in the media world. New consumer habits, new entrants to the space, new competitors every day, and consolidation going on all around us. Rapid change has become the norm—it’s impossible to predict the next big thing. What I do know, though, is that we’ve got valuable assets, great people running them, and we remain one of the preeminent broadcasting companies in America.

No doubt the rumor mill will begin anew with speculation about who might buy us or who we might buy or whether the regulatory landscape still favors consolidation. We can’t do anything about such speculation. What we can do is rededicate ourselves to our own performance. Let’s shake off the cobwebs of deal distraction, ignore the outside noise, and continue delivering on our commitment to each other, to our customers, to our partners and to the communities we serve. If we do that, the rest will take care of itself.

Let’s get together for a companywide town hall meeting tomorrow at Noon ET. We’ll broadcast the meeting live to our business units, talk more about all these issues and take your questions—you can submit questions in advance of the meeting to: questions@tribunemedia.com.  In the meantime, if you have any concerns, our HR team is ready to help; and Gary Weitman can handle any media inquiries you might get.

Thank you, again,
Peter

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Big merger, big problem, big surprise!

This was starting to get a little hard to keep track of, and I wrote most of this last night. Good thing I waited to publish, because I had to really rewrite today!

It’s looking like the big media merger I’ve been writing about so frequently may not happen! Even better, it looks like one of the seven deadly sins – greediness – may have killed the deal!

But now, a new contender (and a good one) is putting all its stations up for sale, if the price is right.

Let’s start with the latest.

FTVLive’s Scott Jones learned privately-held conglomerate Cox Enterprises “intends to pursue strategic options for its ownership or other interest in CMG’s (subsidiary Cox Media Group) 14 TV stations.”

This is the statement from the president of Cox Media Group, known as one of the best owners of TV stations in the country.

Cox president

Notice it gives a very tentative timetable of “six months to a year to complete.”

And this is the statement from the president/CEO of parent company Cox Enterprises.

Cox ceo

It seems every letter of this type addresses uncertainty by encouraging employees to keep up the good work.

Cox Media Group owns TV stations, radio stations and newspapers. The parent company also owns Cox Communications, the largest private telecommunications company in the U.S., the nation’s third-largest cable company, advanced digital video, Internet, phone, and home security and automation services. Plus, there’s Cox Automotive, which helps dealers, manufacturers and car shoppers.

There’s no question Cox decided it would try to sell out because Sinclair Broadcast Group – arguably one of the dirtiest and definitely the largest company to own TV stations – seems to have unexpectedly lost its 14-month try for approval to merge with one of the most iconic as well as largest broadcasters, Tribune Media.

NO sinclair tribune

Everything had seemed set. The price of $3.9 billion had been agreed upon.

The Federal Communications Commission – with pro-business Republicans in the majority – even went out of its way to make it happen by reinstating rather than ending a rule!

It brought back the UHF discount in April 2017, less than a year after it was eliminated, paving the way for Sinclair and Tribune combined to meet national ownership limits. The merger was announced the next month.

— UPDATE: The FCC inspector general cleared Chairman Ajit Pai of being unfairly biased in favor of the Sinclair Broadcast Group–Tribune Media merger. —

The combined company was supposed to own control a whopping 233 TV stations and make a move into big cities like New York (WPIX), Los Angeles (KTLA), Chicago (WGN) and Philadelphia (WPHL). Sinclair stations would’ve reached 72 percent of U.S TV households.

Unfortunately for it, the limit was just 39 percent, so Sinclair decided to sell 23 stations – 14 of Tribune’s and nine of its own – to stay under the national TV ownership cap.

So what went wrong? A lot, even though it looked like nothing was going to stop the unfortunate merger.

Rupert Murdoch wikimedia commons
Rupert Murdoch, Wikimedia Commons

Sunday, The Baltimore Sun named several things: Sinclair was already too big; it forced its owners’ conservative views on local news around the country; the company’s ego grew, “assuming it would get its way;” and even behind-the-scenes influence from rival Fox Broadcasting owner Rupert Murdoch.

What finally did the deal in was,

Ajit Pai fcc wikipedia
Ajit Pai (Wikipedia)

“FCC Chairman Ajit Pai, an appointee of President Donald J. Trump who has been viewed as friendly to Sinclair and such a merger, raised ‘serious concerns’ (last) Monday about whether the deal would serve the public interest.”

It’s nice to see the public interest mentioned. Doesn’t happen nearly as often as it should!

Stay with me because if you haven’t realized, there are many aspects to this story. Let’s recap, as more and more information was revealed, to see where we are tonight.

Back in mid-January, I showed you the FCC fined Sinclair $13.4 million for

“allegedly airing news programming that was paid for by a sponsor. … The two Democrats on the five-member FCC pretty much called the Sinclair fine peanuts because Sinclair aired the sponsored content 1,723 times on 77 stations, has had trouble with the FCC before and grossed $2.7 billion in revenue last year. The fine could’ve been $82 million. … I think Sinclair should consider itself lucky. Very lucky.”

By then, it had already bought Bonten Media Group’s stations including WCYB in the Tri-Cities of TN/VA, where I’d been digital media manager.

I wrote,

Click here and see how the WCYB website’s look seemed to change overnight. It’s like everything is becoming the same and there’s no need nor room for creativity.”

Also,

“Sinclair requires conservative commentaries sent from its Maryland headquarters to air during its stations’ local newscasts. That causes viewers to think the biased people they see every night, tossed to by their local anchors, are local as well.”

I remembered, “In 2004, Sinclair barred the ABC affiliates it owned from airing the episode of Nightline that profiled American soldiers killed overseas. (It owns stations affiliated with all of the networks.) The same year, it tried to get its stations to carry a pre-election film that bashed presidential candidate John Kerry.”

And,

“Its gargantuan size already has liberals worried about its influence on elections.”

Bottom line: I admitted “with more competition, a broadcast license is no longer a license to print money as it used to be. But the airwaves belong to the public. TV stations have special responsibilities.” Yet rules were being loosened and I referred to that as, “You give them an inch and they ask for a foot!”

I questioned whether Sinclair would keep its promise to keep local programming local and pay to carry unique events like the Mummers Parade on Philadelphia’s WPHL-17.

On Jan. 27, I actually wrote,

“Next week, the Federal Communications Commission may let Sinclair Broadcast Group buy Tribune Media but force Sinclair to sell off a bunch of stations because it’ll be (way, way, way) too big.”

Fox network

Then, I mentioned 21st Century Fox planning to downsize and what so-called New Fox would look like.

“Reports are Fox will buy ten of those stations. That means, as I wrote earlier this month about the company:

earlier

(Those cities except San Diego had NFL football teams, and Fox – which carries most Sunday NFC games – won Thursday Night Football package that also involves the AFC.)

“Cleveland, are you listening?

“And also from earlier this month, don’t expect a list of Fox-owned TV stations on the Fox Television Stations Group’s website, no matter how many times I put up the link. That would be too relevant!”

Thursday Night Football logo

I called my Feb. 22 post “Got cable, satellite? You’ll foot the bill for Fox’s Thursday Night Football” and showed how Fox’s enormous bid of $3.3 billion for the rights for five years

“is going to trickle down to you and me.”

I traced the skyrocketing cost of sports TV rights over the decades but explained overpaying isn’t always bad because,

“These days, Fox doesn’t have much of a regular Thursday night lineup. The NFL would draw viewers.”

Then, naturally,

“That means Fox stations can expect a call from the network demanding more money for providing better programming – especially in cities with NFL teams – and that may not be so bad, considering what Fox airs on Thursday nights these days? (Do you know?) … And where will these stations get that extra money? Sure, selling ads for higher prices, but also demanding to charge your cable or satellite company more when its contract is up — Fox will insist they do — and that will raise your bill.”

That was part of Fox’s plan to air as many live events as possible and buy more stations. Which brought up Sinclair.

I explained,

“If the $3.9 billion deal goes through, Sinclair will have to sell off some stations because the Federal Communications Commission (public airwaves) and Justice Department (antitrust) ownership limits. Also, Sinclair and Tribune already own stations in some markets and compete, so the combined company would own multiple stations in one city. … Fox wants to buy some of those stations, Sinclair will be forced to sell, and New Fox will have the money from selling so much to Disney/ABC.”

I did note Philadelphia-based Comcast/NBC had “offered substantially more” for Fox at that point.

comcast fox disney

Also,

“Media watchdog groups have long criticized Sinclair for using shared-services agreements to control stations without owning them, which they see as a loophole around the FCC’s ownership rules.”

Plus,

“People strongly opposed to the mega-deal argue it would reduce the number of voices in media and diminish coverage of local news.”

And,

“The (New York) Times learned from New Jersey Rep. Frank Pallone and two congressional aides, ‘The top internal watchdog for the F.C.C. opened an investigation into whether Mr. Pai and his aides had improperly pushed for the rule changes and whether they had timed them to benefit Sinclair.’”

A week later, Feb. 28, I pointed out,

Sinclair owns more Fox affiliates than anyone else, giving it power, and owns more Fox affiliates than stations of any other network. In fact, Variety reports that after the deal, Sinclair will have more Fox affiliates than even 21st Century Fox itself owns! … And Sinclair is proposing it be allowed to keep multiple stations in Harrisburg, Indianapolis, and Greensboro, N.C. — even though FCC rules say a company can’t own two of the top four stations in a local market.”

I posed the question,

“Will the merger bolster local news coverage and be a stronger competitor to internet giants like Facebook and Google — or harm competition?”

Broadcasting & Cable magazine quoted Business in the Public Interest chairman and CEO Adonis Hoffman, a former top FCC staffer, as saying,

“When any number of companies outside the broadcast sector can reach the entire country with the same programming, the national cap becomes a fiction that limits, and applies only to, broadcasters.”

I disagreed, saying,

“Those other companies — cable, satellite and the internet — don’t use our public airwaves and broadcasters do, so the rules should be different.”

Also at that point, the plan was

“for Tribune’s WPIX-New York (CW) and WGN Chicago (independent) to be sold, but still operated by Sinclair, which wants its stations to be seen all over the country and is how it has operated around the rules for years.

“Really gone will be Tribune’s Fox affiliate KSWB-San Diego. Expected to be gone are Tribune’s Fox affiliates in Seattle (KCPQ), Denver (KDVR, which Fox once owned), Salt Lake City (KSTU, which Fox once owned), Sacramento (KTXL) and Cleveland (WJW, which Fox once owned). Let this show Fox owned but sold three of those five stations, which shows a lack of commitment to those communities.

Plus, there’s Tribune’s CW Miami-Fort Lauderdale affiliate (WSFL-Channel 39). Imagine the Fox network buying Miami’s WSFL. I’m sure Fox affiliate WSVN’s owner Ed Ansin would have something to say about that. He has more experience than anyone in that situation because NBC did it to him twice: in Miami in 1989 and Boston in 2017.”

The next day, March 1, was one of the most popular posts, possibly because I hadn’t seen it reported at all by South Florida media. The post also had lots of cities, and old logos and promos.

credits wsvn
I started my producing career at WSVN.

“WSVN without Fox? It’s possible if….” ran through many examples from over the years of networks dumping their affiliates in certain cities because they wanted a station of their own. It was because of “the possibility WSVN-Channel 7 in Miami-Fort Lauderdale may lose its Fox affiliation” if Fox buys the competing CW affiliate, which was one of the stations that was going to be spun off from the Sinclair-Tribune deal. Fox hadn’t owned too many stations compared to other groups.

tv owner population share

I mentioned,

The plan (was) that Fox itself will buy several Tribune stations – all Fox affiliates already – but also WSFL-Channel 39, which is South Florida’s CW affiliate.”

WSFL

Then, I posed two questions,

“What would happen to programming on both stations?” and “Would (Fox) give up WSVN’s good ratings and help from its large news department, just to have a station of its own?”

But in 1989, NBC bought CBS affiliate WTVJ when Ansin wouldn’t sell. CBS bought independent (Fox still just airing on a couple of nights) WCIX with a small news department and signal 30 miles south of all the other stations.

In San Francisco, NBC demanded longtime affiliate KRON for a very low price, when the owners decided to sell. When KRON was sold elsewhere, NBC pulled its affiliation and moved former ABC affiliate KNTV up from San Jose.

In Boston, NBC wanted affiliate WHDH – owned by Ansin – for a very low price. Once again, he refused so NBC dropped WHDH and started a new station using New England Cable News; bumped the Telemundo signal on WNEU-Channel 60 in New Hampshire, which it owned, to a sub-channel, and put NBC on the main channel; bought WBTS-LD (low-powered) Channel 8; and leased a sub-channel of WMFP (virtual channel 60.5) in Lawrence, Mass. Then, after a year, it decided the station should be called NBC 10!

In Raleigh/Durham, NBC dumped its weak affiliate and affiliated with a new station that was owned by a company that owned successful NBC affiliates, but it had to start up a news department from scratch.

WNCN1

In Charlotte, Fox dumped one of its strongest affiliates that had a news department just to affiliate with the former UPN station, and start up a brand new news department, so it could carry Carolina Panthers football games.

You could say viewers in lots of the country got confused and there are no more partnerships, since companies will do whatever it takes to make more money.

Looking ahead, had the Sinclair-Tribune deal gone through, some CW affiliates owned by Tribune probably would’ve lost their affiliations to CBS-owned stations.

And separately, there was the channel 4-channel 6 swap in Miami.

I noted in the Miami market,

“Putting WSFL on the block goes against Sinclair trying to buy up stations in every city around the country – or just make a deal with the owners to operate them, to get around the rules. That’s because neither Sinclair nor Tribune have any other stations in Miami.”

And don’t forget Miami has the Dolphins NFL team.

I ended by showing,

“There are also examples where networks own stations but don’t put their own programs on those stations, because affiliating with competing stations makes more sense.”

But nothing had been decided about Miami.

feature no sinclair tribune miami

By March 7, there was finally some “definite” information, or so everyone thought since some details were released.

Sinclair

“announced it would sell several stations to stay under a new cap, but the deals it reached would let it continue to control the New York and Chicago stations it sells, so those big cities won’t count. (Is there ANYBODY who thinks that’s OK?)”

WPIX

“Sinclair (was supposed to) sell WPIX-New York for a measly $15 million to Cunningham Broadcasting. More than 90 percent of that company’s stock is controlled by trusts owned by the estate of Carolyn Smith, the late wife of Sinclair founder Julian Smith and mother of Sinclair chairman David Smith. So the Smith children own it. Talk about a shell corporation! Cunningham owns 20 stations but at least 14 of them are run by Sinclair!

“And it (was supposed to) sell WGN-TV Chicago for just $60 million to Steven B. Fader, chairman of Baltimore-based Atlantic Capital Group and business partner of David Smith in Atlantic Automotive Corp.

“Those stations are each worth hundreds of millions of dollars, maybe a half-billion.”

WGN-TV

On top of that, Variety says,

“Sinclair would not only continue to operate the stations and receive the lion’s share of their revenue, but the sale agreement with both buyers gives Sinclair an option to buy the stations back within eight years. That’s seen as a marker for the company to bide its time in the hopes that the FCC relaxes its station ownership restrictions in the near future.”

TVNewsCheck‘s editor Harry Jessell reported he spoke to Ansin who said Fox hasn’t mentioned anything about “moving into the market and no expression of interest in WSVN.”

I mentioned several other cities where the networks got rid of affiliates they didn’t want. Some cases were nicer than others.

On a national level, Disney’s bid beat Comcast’s for Fox in the U.S., but it wasn’t over.

Comcast logo sized

In Europe, Comcast outbid Fox to buy the 61 percent of Sky PLC Fox didn’t already own. Fox is still trying to consolidate ownership of the powerful British pay-TV company in order to turn it around and sell Sky to Disney.

fox sky news disney

Broadcasting & Cable (reported) eight of the 50 states’ attorneys general came out against the SinclairTribune merger. They told the Federal Communications Commission “it does not have the authority to raise the 39 percent national audience reach cap for TV station groups, that it does have the authority to eliminate the UHF discount” – the old rule that discounts the number of viewers UHF stations reach by half, because they were weaker and harder to watch years ago before modern technology like cable, computers, etc. – and that it should eliminate the discount.

They – according to B&C – argue

“getting rid of the cap would threaten diversity, competition, and localism, and cites Sinclair Broadcasting, whose Tribune deal would benefit from lifting or eliminating the limit, pointing out that it distributes news stories that must run in its newscasts.”

The attorneys general included the ones from Illinois (home to Tribune) and Maryland (home to Sinclair), who opposed the takeover because

“the combination would decrease consumer choices and diversity in the media marketplace.”

According to The Sun, Sinclair claimed

“the merger would allow the new company to better serve local viewers with expanded local coverage, better facilities and more programming, delivered in part by operational efficiencies.”

Days later, on March 11, I published one of my longest posts.

“Call to action: Help stop Sinclair from taking over Tribune” went into detail about why the deal was bad and showed you how to contact the FCC, your Congressional representative and your senator.

This was when Sinclair started ordering hundreds of its local news anchors around the country to recite a script using President Trump’s talking points against the rest of the media.

You’ll remember,

“I’m [we are] extremely proud of the quality, balanced journalism that [proper news brand name of local station] produces. But I’m [we are] concerned about the troubling trend of irresponsible, one sided news stories plaguing our country.

“The sharing of biased and false news has become all too common on social media. More alarming, national media outlets are publishing these same fake stories without checking facts first. Unfortunately, some members of the national media are using their platforms to push their own personal bias and agenda to control ‘exactly what people think’ … This is extremely dangerous to our democracy.

“We understand Truth is neither politically ‘left or right.’ Our commitment to factual reporting is the foundation of our credibility, now more than ever.”

feature group

And you’ll certainly watch it – and the parodies like above – in this post!

Blame it on Scott Livingston, Sinclair’s senior vice president of news, who wrote in a statement to CNN:

“Promo messages, like the one you are referring to, are very common in our industry. … “This promo addresses the troubling trend of false stories on social media [Livingston’s emphasis], and distinguishes our trusted local stations as news destinations where we are committed to honest and accurate reporting. This promo reminds our viewers of this mission.”

CNN also went into great detail about how the promos were supposed to “look and sound.”

“Talent should dress in jewel tones — however they should not look political in their dress or attire. … Avoid total red, blue and purples dresses and suits. Avoid totally red, blue and purple ties, the goal is to look apolitical, neutral, nonpartisan yet professional. Black or charcoal suits for men…females should wear yellow, gold, magenta, cyan, but avoid red, blue or purple.”

CNN concluded its description with,

“At the end of the promo, viewers are encouraged to send in feedback ‘if you believe our coverage is unfair’ and ‘Corporate will monitor the comments and send replies to your audience on your behalf,’ so ‘In other words, local stations are cut out of the interactions with viewers. Management will handle it instead.’”

I gave my opinion on the whole propaganda problem:

“TV stations should be run by their general managers who live in and are part of the community. And this is exactly the opposite. … It shouldn’t matter much whether GMs come from the sales side or the news side, as long as they’re serving the public interest. There should be hardly any interference from a major corporation’s headquarters.”

ABC News Nightline

I reminded readers, “Sinclair ordered all of its ABC stations not to air April 30, 2004’s episode of Nightline in which Ted Koppel read the names of the more than U.S. troops killed in action in the Iraq war,” how Sinclair said the Nightline program

“appears to be motivated by a political agenda designed to undermine the efforts of the United States in Iraq. … Mr. Koppel and Nightline are hiding behind this so-called tribute in an effort to highlight only one aspect of the war effort and in doing so to influence public opinion against the military action in Iraq,”

and how the company’s lawyer Faber confirmed his company told its ABC affiliates not to air the program because,

“We find it to be contrary to public interest.”

Vietnam veteran and prisoner of war, Sen. John McCain (R-Arizona) disagreed. He wrote in a letter to David Smith:

“Your decision to deny your viewers an opportunity to be reminded of war’s terrible costs, in all their heartbreaking detail, is a gross disservice to the public, and to the men and women of the United States Armed Forces. … It is, in short, sir, unpatriotic. I hope it meets with the public opprobrium it most certainly deserves.”

Regardless of politics, whose opinion on “public interest” would you support, John McCain’s or David Smith’s?

Of course, Sinclair stations not airing the program with the rest of the country got many complaints.

So much for localism!

Speaking of David Smith, I had to mention The Baltimore Sun reporting he was arrested “and charged with committing a perverted sex act in a company-owned Mercedes” in August, 1996. It happened “in an undercover sting at Read and St. Paul streets, a downtown corner frequented by prostitutes.” Smith and Mary DiPaulo “were charged with committing unnatural and perverted sex act.” Police said “they witnessed the two engage in oral sex while Smith drove north” on Baltimore’s Jones Falls Expressway. Neither Sinclair nor its local flagship station WBFF-45 would comment. People in the media have lost jobs over less.

Is this someone who deserves a public broadcast license?

vote voting election

But back to politics. CNN also reported,

“According to campaign finance records, four of Sinclair’s top executives each have given the maximum campaign contribution of $2,000 to the Bush-Cheney re-election campaign. The executives have not given any donations to the campaign of Sen. John Kerry, the presumptive Democratic nominee, the records showed.”

Looking back at that same electionThe Seattle Times wrote in 2013,

“Most notoriously, the company ordered its stations to air a documentary critical of Democratic presidential candidate John Kerry right before the 2004 election. … After an uproar, the stations ended up airing just a few minutes of the documentary, Stolen Honor: Wounds That Never Heal, as well as excerpts from a pro-Kerry documentary and interviews with veterans.”

The article continued,

President Barack Obama Official White House Photo
Official White House Photo

“In 2010, several Sinclair stations aired an infomercial about President Obama intended to sway voters in midterm elections. The 25-minute piece, funded by a Republican political-action group, said Obama “displays tendencies some would call socialist” and claimed the president had accepted campaign donations from Middle Eastern terrorist organizations.

“In 2012, on the Monday before the election, viewers in some swing states found their nightly news or other programs replaced on Sinclair channels by an ‘election special’ produced by Sinclair that was biased against Democrats.”

Therefore, I wrote,

“It appears Sinclair’s owners are far right-wingers using their assets (and our airwaves) to get what they want politically. That’s not the public interest.”

Neither is Sinclair being the king of the “must-runs,” which The New York Times reported in May arrive every day at its TV stations. The paper defined them as

“short video segments that are centrally produced by the company. Station managers around the country are directed to work them into the broadcast over a period of 24 or 48 hours.”

Again, so much for local control over content! The Times gave these examples:

“Since November 2015, Sinclair has ordered its stations to run a daily segment from a ‘Terrorism Alert Desk’ with updates on terrorism-related news around the world. During the election campaign last year, it sent out a package that suggested in part that voters should not support Hillary Clinton because the Democratic Party was historically pro-slavery. More recently, Sinclair asked stations to run a short segment in which Scott Livingston, the company’s vice president for news, accused the national news media of publishing ‘fake news stories.’”

komo

And it described a Seattle station the company bought less than five years earlier,

“Eight current and former KOMO employees described a newsroom where some have chafed at Sinclair’s programming directives, especially the must-runs, which they view as too politically tilted and occasionally of poor quality. They also cited features like a daily poll, which they believe sometimes asks leading questions.

“The journalists at KOMO described small acts of rebellion, like airing the segments at times of low viewership or immediately before or after commercial breaks so they blend in with paid spots. They all spoke on condition of anonymity, citing fear of reprisal from the company.

“Those interviewed said that being on the other side of the country from the corporate headquarters outside Baltimore gave them some breathing room. But not always.

“In late 2013, for instance, after The Seattle Times wrote an editorial criticizing Sinclair’s purchase of KOMO, Sinclair ordered KOMO to do a story critical of the newspaper industry, and of The Seattle Times in particular, according to two of the people interviewed.

“KOMO journalists were surprised in January when, at a morning planning meeting, they received what they considered an unusual request. The station’s news director, who normally avoided overtly political stories, instructed his staff to look into an online ad that seemed to be recruiting paid protesters for President Trump’s inauguration. Right-leaning media organizations had seized on the ad, which was later revealed as a hoax, as proof of coordinated efforts by the left to subvert Mr. Trump.

“Only after reporters had left the room did they learn the origin of the assignment, two of them said: The order had come down from Sinclair.”

Livingston, the company’s vice president for news, told The Times,

“We work very hard to be objective and fair and be in the middle. … I think maybe some other news organizations may be to the left of center, and we work very hard to be in the center.”

I interpreted that to mean Sinclair works very hard to be to the right of other news organizations.

At least the Seattle station, an ABC affiliate, carries news.

Sinclair owns a Fox affiliate in Pittsburgh, WPGH-Channel 53. It used to produce its own newscast but no longer does. Instead, it runs a newscast produced by a competitor. That’s one less local television voice.

Sinclair pretty much closed up shop in Toledo, Ohio. Its NBC affiliate there has a few people left in news but production is done out of its CBS/Fox stations in South Bend, Indiana. That includes its anchors and weather people. Who knows if they’ve ever been to Toledo, know anything about it, its history, what’s popular there, etc.? The weather person is supposed to know the nuances and micro-climates of that area. Sinclair has shown none of that matters.

mark hyman
Mark Hyman

Sinclair had its former Vice President for Corporate Relations Mark Hyman give “must air” right-wing commentaries for years and then hired former Trump campaign spokesman and advisor Boris Epshteyn as its chief political analyst, a month after he left the White House.

Boris Epshteyn clip artSinclair does not offer commentaries from the other side, but tells you the news programming their network-affiliated stations air is left-wing liberalism.

Plus, don’t forget President Trump’s son-in-law and advisor Jared Kushner said Sinclair executives worked with the campaign to spread pro-Trump messages in Sinclair newscasts.

And, concerning the FCC chairman,

“A New York Times investigation published in August found that Mr. Pai and his staff members had met and corresponded with Sinclair executives several times. One meeting, with Sinclair’s executive chairman, took place days before Mr. Pai, who was appointed by President Trump, took over as F.C.C. chairman.

“Sinclair’s top lobbyist, a former F.C.C. official, also communicated frequently with former agency colleagues and pushed for the relaxation of media ownership rules. And language the lobbyist used about loosening rules has tracked closely to analysis and language used by Mr. Pai in speeches favoring such changes.”

Then I scrutinized prices for Tribune stations Sinclair was buying versus past station sales and wrote,

“I think the FCC should insist Sinclair itemize every TV station it plans to buy from Tribune, tell everyone how much it values each and how it adds up to $3.9 billion.”

I think most journalists try to be fair and leave their own opinions at home because they tend to be good people who try to do the right thing, unlike a lot of the corporations that only look out for shareholders and in Sinclair’s case, the owners’ political views. That has caused veteran journalists at stations being bought by Sinclair leaving for the competition, stations in other cities, or just retiring so they could keep the benefits they’ve earned at the other company.

Back on March 23, we thought we’d learned the fates of seven more TV stations that would’ve had to be divested.

They were to go to political commentator, entrepreneur, author of a nationally syndicated conservative newspaper column, and host of the daily radio show and the nationally syndicated TV program, The Armstrong Williams Show. Williams is also the largest African-American owner of television stations in the U.S.

armstrong williams

Wikipedia described him as,

principal in Howard Stirk Holdingsa media company affiliated with Sinclair Broadcasting that has made numerous television station purchases.”

Williams had been in business with Sinclair – a corporation with overtly and pushy conservative leanings – before, but this time looked different.

The backstory is that Williams helped Sinclair buy Barrington Broadcasting. He got NBC affiliate WEYI-TV in Flint-Saginaw-Bay City, Mich., and CW affiliate WWMB in Myrtle Beach-Florence, S.C., BUT according to Wikipedia,

“Both stations remain operated by Sinclair under a local marketing agreement, which resulted in allegations that the company was simply acting as a ‘sidecar’ of Sinclair to skirt FCC ownership rules. Williams defended the allegations, noting that he had full control over their programming, and received the majority of their revenue.”

He did buy five other stations, three from Sinclair.

No price was announced in this deal.

at&t time warner

Funny thing is, according to White House Press Secretary Sarah Sanders, President Trump attacked AT&T’s $85.4 billion bid for Time Warner. However, he even spoke to Fox owner Rupert Murdoch in December and congratulated him on his Disney deal!

Maybe that’s because Fox owns Fox News Channel, which Trump likes, and Time-Warner owns CNN, which the president does not like.

Don’t forget Comcast had originally even offered more than Disney for all those Fox assets but was rejected! That may have been a good thing, since a federal judge let AT&T get Time Warner but the government is appealing. A Fox-Comcast deal would’ve been similar, with a content creator and a content provider.

Then I went over the FCC’s broadcast ownership limits and the reason a combined Sinclair-Tribune could not have simply kept the two highest-rated stations in a big city, or more than one in a smaller city.

Days later, on March 26, I mentioned the Sinclair Divestiture Trust. It’s a flexible list of stations in

“a series of Form 314 filings have been made with the FCC indicating the divestiture of up to 23 broadcast television properties by Sinclair.”

The stations – from both Sinclair and Tribune – were put in the trust “for the purpose of removing them from the licensee” – in other words, to be sold off.

According to RBR+TVBR, Sinclair noted stations were placed in the divestiture trust

“in order to retain flexibility, based on the outcome of Sinclair’s request to own two top-four stations in this market, to determine which station, if any, will be placed in the Trust.”

That’s because FCC rules would not have let the proposed controversial combination simply decide to hold onto the two highest-rated stations in a city.

I really wrote a lot because on March 30, I discussed how unionizing could’ve helped those news anchors at Sinclair-run stations who didn’t want to look into a camera and read that corporate promotional nonsense during newscasts. I think a union would’ve helped the journalists keep the business people in their place, which is out of the newsroom.

The Seattle Post-Intelligencer — which properly discloses “KOMO News and SeattlePI have a content-sharing agreement” — called that script

“the next step in the company’s plan to undermine non-Sinclair outlets.”

The SeattlePI continued:

“The claim of balanced reporting is undermined by must-run segments like the one about the ‘Deep State’ that ran during KOMO’s 6pm newscast last week. In the March 21 segment, former Trump adviser Sebastian Gorka parroted a Trump talking point regarding the existence of a ‘Deep State’ attempting to undermine the U.S. government.

“That segment was produced by Sinclair’s Kristine Frazao, who before coming to Sinclair was a reporter and anchor for the Russian-government funded news network RT, described as ‘the Kremlin’s propaganda outlet’ by the Columbia Journalism Review.

“Sinclair also requires stations to run segments from Boris Epshteyn, a Russian-born former Trump adviser who now serves as Sinclair’s chief political analyst. Epshteyn recently produced stories with titles like, ‘Pres. Trump deserves cabinet and staff who support his agenda, yield successes’ and ‘Cable news channels are giving way too much coverage to Stormy Daniels.’”

In January, Sinclair had some nerve when it “asked employees to donate to its political action committee meant to sway lawmakers.” FTV Live’s Scott Jones leaked the document that called the Sinclair Political Action Committee, “our fund that supports candidates for Congress who can influence the future of broadcasting” — in their interest, of course!

jerry springer
Jerry Springer

This all made me wonder when it’s time to jump ship, like WMAQ’s Carol Marin did in Chicago in 1997 when Jerry Springer started giving commentaries on her newscast. The New York Times called her “one of that city’s most popular and respected television news anchors.” Her co-anchor also quit.

I ended with New York magazine publishing a piece titled “Local news is turning into Trump TV, even though viewers don’t want it” describing — without repeating what’s above — how

“Trump’s handpicked FCC chair, Ajit Pai, spent much of last year dismantling regulatory obstacles to media consolidation — including two rules that stood in the way of Sinclair’s desired merger with Tribune Media.”

Then it presumed “Sinclair has repaid this favor with interest” and asked “Why has Sinclair’s programming become more right-wing, even as it has expanded into more left-leaning media markets?”

On April 4, my post “My urge: Follow your conscience, despite the cost” discussed how local TV news anchors around the country have been reading those nonsense marketing scripts the rulers of Sinclair Broadcast Group demanded.

According to Bloomberg, the day before, the statement takes “aim at the integrity of other U.S. media outlets.”

That left many – myself included – wondering why some of the company’s journalists with credibility didn’t just quit doing what they’re told, despite the fact they hate everything about it, personally and professionally? Wouldn’t you have more respect for someone who uses their conscience and just says no, regardless of the consequences?

Bloomberg reported,

“The short answer is the cost may be too steep. According to copies of two employment contracts reviewed by Bloomberg, some Sinclair employees were subject to a liquidated damages clause for leaving before the term of their agreement was up: one that requires they pay as much as 40 percent of their annual compensation to the company.”

Can you imagine?

And that right to enforce the liquidated damages clause isn’t just a scare tactic. I gave an example and later learned, a Sinclair assistant news director who left for a job in another city less than two months before her contract ended had to pay too much to leave.

With Sinclair, some employees who never appeared on television were still required to sign such contracts.

Want to fight? Then there’s forced arbitration which means no sympathetic jury for the employee.

No reasonable person can feel anything but resentment if they know how the company operates.

But don’t forget journalists are natural storytellers.

Mediaite reported in Portland, Ore., the general manager issued an internal memo instructing his staff not to answer questions from anyone contacting them! FTVLive’s Scott Jones got a copy of the memo, which said most callers “likely haven’t actually watched and don’t have full context on (sic) due to social media, etc. I will also remind you that giving statements to the media or sharing negative information about the company can have huge implications.” Click here to see it.

Despite what you read, President Trump tweeted twice he’s a fan of Sinclair.

But KOMO-Seattle anchor Mary Nam – remember, a Sinclair station – took issue with the president and had the guts to call him out for calling watching “Fake News Networks” funny.

Another Sinclair station, WMSN in Madison, Wisc., was dealing with record snowfall (even for them!) and an important state Supreme Court election. Sounds a lot more local, important and even life-saving than the bullshit Sinclair demanded.

And thanks again to FTV Live’s Scott Jones who found this gem from WGN-TV executive producer Jeff Hoover.

In Rochester, Norma Holland of WHAM-13’s Good Day Rochester wrote about her dilemma on Facebook:

The Huffington Post reported,

“Some employees have spoken out about their frustration at having to parrot the conservative politics of their employer,” but also, “Others say they’d like to do more, but they’re wary due to what they say is Sinclair’s policy and practice of closely monitoring its employees.”

Also, “There’s a lot held over us,” a journalist at a Sinclair affiliate told HuffPost on the condition of anonymity. “They pay attention to what websites we’re on.”

Plus,

“Sinclair employees say their parent company often pays especially close attention to its affiliates’ editorial activities, meddling in how they present their stories and graphics, and sometimes going so far as to delete offensive comments on an affiliate’s online articles before that station’s own web editors have a chance to do so.”

So a huge THANK YOU to everyone who has done their part to fight for what’s right. I hope they all still have their jobs, or moved on to something better. Unfortunately, I don’t think that was the case in Portland, Ore.

On April 10, I showed you Sinclair is having an effect on trust in local news.

Local news organizations remained the most trusted source of information in Pew Research Center’s polling on trust in media – even though in January, a Pew Research Center report announced fewer Americans regularly rely on TV news, down to 50 percent of U.S. adults, from 57 percent a year prior.

Then, The Poynter Institute says Emory University researchers found

“many TV local news stations are focusing more on national politics and have taken a rightward slant over the past year. And that move is stemming from ownership of the stations, not the demands of a local audience.”

Poynter noted,

“The study comes just as many are raising concerns about a coordinated effort by one major owner of TV stations that forces its anchors to record a segment about ‘the troubling trend of irresponsible, one-sided news stories plaguing our country.’”

The researchers examined 7.5 million transcript segments from 743 local news stations and saw huge differences between other stations, and outlets owned by Sinclair.

“The authors found Sinclair stations, on average, carried about a third less local politics coverage and a quarter more national politics … (including) commentaries the stations are forced to run by former Trump official Boris Epshteyn.”

Again, how can they claim they’re good for localism?!

On April 11, I wrote about FCC Chairman Ajit Pai speaking at a Las Vegas meeting, the day before.

TVNewsCheck’s Harry A. Jessell reported him saying his approach to broadcast regulations was,

“You either believe in scrapping outdated regulations or you don’t. We do.”

Under the former Verizon lawyer’s leadership, eight rules were eliminated with more to come. (Of course, we know the UHF discount is back, putting Pai under investigation by the FCC inspector general.)girl watching tv

As for what’s next, according to Pai, “In particular, Commissioner [Michael] O’Rielly is now leading an effort to update our children’s television rules so that they better reflect the way that kids watch video these days, and I look forward to getting his recommendations.”

Jessell said O’Rielly got

“a call from an Ohio broadcaster who said his plans for a Saturday morning news program were ‘derailed’ by the need to make way for children’s programming.”

I don’t know which station but will go to go out on a limb and say the news program would be much cheaper using a set already in the studio and an announcer already on staff. And where was the required children’s programming anyway? That’s just my two cents.

Also from Jessell:

“Pai also patted himself on the back for helping broadcasters secure an additional $1 billion from Congress to insure that they will be fully reimbursed for moving to new channels in the wake of the FCC incentive auction.”

So much for helping the poor and the children! Ain’t government great?!

On May 4, I published the massive “Media mega-merger may be moving closer, impacting Miami” because we learned the biggest news for a local TV market if Sinclair and Tribune would’ve merged would’ve been Miami/Fort Lauderdale (of course!).

A week earlier, TVNewsCheck‘s Harry Jessell noted,

For nearly a year, Sinclair has been screwing around, working every angle in its grim determination to hang on to every Tribune station it could in the face of FCC ownership caps and Justice Department antitrust limits.”

But the deal announced in May, 2017, still hadn’t happened.

Government approval would have to come from the Justice Department for antitrust worries, and the FCC to approve ownership limits.

A number of stations would have to be sold and I’d already explained TV ownership limits, with four rules in play: 1. national TV ownership, 2. local TV multiple ownership, 3. the number of independently owned “media voices” – 4. and at least one of the stations is not ranked among the top four stations in the DMA (that’s the “designated market area” or city, and ranking based on audience share), and at least eight independently owned TV stations would remain in the market after the proposed combination.

On April 24, The Wall Street Journal reported Sinclair said it’ll spin off 23 stations in 18 markets – some owned by Sinclair and others by Tribune.

Also on April 24, Deadline magazine reported, “Sinclair expects the transactions for the station sales to close the same day the Tribune deal is approved, and now estimates it all will be wrapped up by June.” Obviously that didn’t happen.

These are the stations owned by Sinclair that would be divested if the merger goes through…

sinclair divest

and these are the stations owned by Tribune.

tribune divest

So we learned who would get the stations, but it’s more complicated than the charts show.

The official licensee could have a different name but we know we’re dealing with stations owned by Sinclair and Tribune.

More importantly and suspiciously is the last column, called Buyer. That’s because Sinclair has been the king of using shell companies to get around ownership rules. These corporations are either owned by the Smith family that owns Sinclair, or others that let Sinclair program them through local marketing agreements. Sinclair doesn’t technically own all those stations, but operates them as if they do.

Cunningham Broadcasting

Cunningham Broadcasting Corporation is the most controversial. It calls itself

“an independent television broadcast company that, together with its subsidiaries, owns and/or operates 20 television stations in 18 markets across the United States.”

Notice “owns and/or operates.”

As for independent, Forbes magazine (not a liberal publication) put out an article called “Meet the Billionaire Clan Behind the Media Outlet Liberals Love To Hate” and it described Sinclair’s owners and their ties to Cunningham.

“The Smith family, which includes brothers David, Robert, Frederick, J. Duncan and a flurry of family trusts, is worth a combined $1.2 billion, Forbes estimates, based on the family members’ ownership of stock in publicly traded Sinclair Broadcasting, share sales over the past 15 years, dividends and some private assets,” it read.

“Revenues have increased 281% over the last decade to $2.7 billion in 2017, while Sinclair’s share price has increased 367% over the same period, pushing its market capitalization up to a recent $3 billion. All of this growth has occurred under the control and oversight of David Smith, 67, the chairman and former CEO of the company, as well as the son of the company’s founder Julian Sinclair Smith,” it continued.

Jessell of TVNewsCheck reported, “Its financials are consolidated with Sinclair’s in its SEC filings and earnings reports.”

Forbes quoted Daniel Kurnos, an analyst at Benchmark Capital, as saying, “Sinclair plays some of the hardest ball of anyone,” from acquiring stations to negotiating advertisement pricing and retransmission fees, which are some of the highest in the business.

sinclair before tribune

Under David Smith, who wouldn’t comment for the article, Sinclair went from three cities – Baltimore, Pittsburgh and Columbus – to what it is now.

“To ‘purely make money’ in a scale-oriented business, David bought up as many broadcast stations as possible. First he concentrated on secondary markets, like Memphis, St. Louis and San Antonio, where operation costs were cheaper than in places like New York or Chicago.

“I believed that certain things were going to happen in the television industry, the most important being consolidation,” David told Forbes in 1996.

So much for public service!

Then came the controversial Cunningham, arguably rigging the system.

“In the 1990s, the company pioneered a technique to circumvent an FCC rule limiting ownership of more than one TV station per metro area. David’s mother, Carolyn Smith, started another business, Cunningham Broadcasting. Following Carolyn’s death in 2012, most of the ownership of Cunningham Broadcasting shifted to a family trust, which is included in the overall Smith family valuation.”

So Cunningham really isn’t independent, as its website claims!

Known as “Glencairn, Ltd. prior to 2002,” it got into some trouble back in 1998. In July of that year, Broadcasting & Cable magazine reported,

PUSH pushing FCC over Sinclair/Glencairn

“The Rainbow/PUSH Coalition is raising questions at the FCC about whether Sinclair Broadcasting is exercising control over a minority-headed TV group with which it has struck a series of local marketing agreements (LMAs).

“In a July 1 filing at the FCC, Rainbow/PUSH said it plans to study whether the LMA deal between Sinclair’s KABB(TV) San Antonio and Glencairn’s KRRT(TV) Kerrville, Tex., violates the commission’s prohibition against common ownership of two local stations. (The rules were more strict then.)

“‘Rainbow/PUSH has not had an opportunity to fully research this matter, and thus preserves here the question of whether Glencaim is the alter ego of Sinclair,’ the group told the FCC.”

More than three years later, in Dec., 2001, Broadcasting & Cable was finally able to report the decision.

FCC fines Sinclair for Glencairn control

“Sinclair Broadcasting exercised illegal control of business partner Glencairn Ltd., the FCC found Monday after three years of investigating the companies’ relationship.

“Each company was fined $40,000 but escaped tougher sanction sought by civil rights groups-a government rejection of Sinclair’s request to buy 14 stations from Sullivan Broadcasting.

“The commission’s three Republicans judged that the companies were liable for misinterpreting FCC policies, but found they did not intentionally mislead the agency about compliance.

“Democratic Commissioner Michael Copps wanted the FCC to pursue a tougher sanction and voted to designate the station sales for hearing in front of an administrative law judge.

“Sinclair has repeatedly ‘stretched the limits’ of FCC ownership rules, he said.”

Back to the Forbes article, last year, Cunningham paid Sinclair more than $120 million for running its stations. Also, Cunningham admits its treasurer and chief financial officer, Lisa Asher, worked as Sinclair’s assistant controller before moving over in 2002.

So we know Cunningham, set to buy Tribune stations in Dallas and Houston, appears to be a shell company, and we can make bets who will operate and control it if the Sinclair-Tribune deal ever comes to fruition.

But there’s a lot more evidence.

Cunningham is headquartered near Sinclair in Maryland, which is very convenient since

“Cunningham Broadcasting owns the FCC broadcast licenses and operates through various management agreements with Sinclair Broadcast Group, Inc. WNUV-TV in Baltimore, Maryland; WTTE-TV in Columbus, Ohio; WMYA-TV in Anderson, South Carolina; WRGT-TV in Dayton, Ohio; WVAH-TV in Charleston, West Virginia; WDBB-TV in Bessemer, Alabama; WBSF-TV in Flint, Michigan; WGTU-TV in Traverse City, Michigan; KBVU-TV in Eureka, California; KCVU-TV in Chico-Redding, California; WEMT-TV in Greeneville, Tennessee; WPFO-TV in Portland, Maine; WYDO-TV in Greenville, North Carolina; and KRNV-TV & KENV-TV in Reno, Nevada.”

bonten tri-cities stations
Bonten’s Tri-Cities stations, from the signature below my work email

Looking at its list of stations — something the Fox Television Stations Group never posted on its own website despite me calling them out for it herehereherehere (so far in no particular order, although I may have missed a couple), and my favorite, here — I showed you Sinclair bought Bonten Media Group but Cunningham bought the stations Bonten operated. Notice those stations listed on the website have no websites of their own.

WBFF

Another dead giveaway is that Cunningham is based at 2000 W. 41st Street, Baltimore MD 21211 and coincidentally, Sinclair flagship WBFF-45 (Fox affiliate) has the same address!

But not just WBFF.

WNUV

So is WNUV-54 (CW affiliate), which says it’s

“owned and operated by Cunningham Broadcasting Corporation and receives certain services from an affiliation of Sinclair Broadcast Group.”

(Sinclair, the corporation, is based in nearby Hunt Valley, MD.)

But that’s not all, folks!WUTV

There’s still WUTV-24 (MyNetworkTV affiliate), with the same look as the other websites, which says it’s

“a SBG Television affiliate owned and operated by Deerfield Media, Inc and receives certain services from an affiliation of Sinclair Broadcast Group.”

Deerfield, with apparently no website of its own (so see Wikipedia’s take), is another of the shell companies, formed in 2012 but not involved in the proposed Tribune transaction.

How’d that happen?

In Nov., 2012, TVNewsCheck reported,

“For years (before 2012), Fox Television Stations’ WUTB Baltimore gave Fox considerable leverage in its sometime contentious affiliation negotiations with Sinclair Broadcast Group.

“If Sinclair ever got out of line, Fox could threaten to yank its affiliation from Sinclair’s flagship station WBFF Baltimore and move it to WUTB.

“But last May, Fox relinquished that leverage when it extended its affiliation with WBFF and 18 other Sinclair stations for five years starting Jan. 1, 2013, and granted Sinclair an option to buy WUTB.

“Sinclair is now exercising that option by assigning it to a third party, Deerfield LLC.

“According to an FCC filing seeking approval of the deal, Deerfield is buying WUTB and allowing Sinclair to run the MNT affiliate through joint sales and shared services agreements.

“The deal gives Sinclair a virtual triopoly in Baltimore where it also operates CW affiliate WNUV, which is owned by Cunningham Broadcasting, Sinclair’s longtime duopoly partner that is controlled by trusts for the children of Sinclair’s controlling shareholders.”

But Sinclair and Deerfield were already in cahoots.

Months earlier, in July, 2012, MarketWatch reported Sinclair intended

“to buy six television stations from Newport Television LLC for $412.5 million and agreed to buy Bay Television Inc. for $40 million. … Sinclair also agreed to sell the license assets of its San Antonio station KMYS and its WSTR station in Cincinnati to Deerfield Media Inc. Sinclair will also assign Deerfield the right to buy the license assets of WPMI and WJTC in the Mobile/Pensacola market, after which Sinclair will provide sales and other non-programming services to each of these four stations under shared services and joint sales agreements.”

The next day, TVNewsCheck reported,

“Sinclair Broadcast is getting six stations in five markets for $412.5 million:
— Cincinnati (DMA 35) — WKRC (CBS)
— San Antonio, Texas (DMA 36) — WOAI (NBC)
— Harrisburg-Lancaster (DMA 41) — WHP (CBS)
— Mobile, Ala.-Pensacola, Fla. (DMA 60) — WPMI (NBC) and WJTC (Ind.)
— Wichita, Kan. (DMA 67) — KSAS (Fox)

“Sinclair is also acquiring Newport’s rights to operate third-party duopoly stations in Harrisburg, Pa. (CW affiliate WLYH), and Wichita, Kan. (MNT affiliate KMTW). Those rights include options to buy the stations. …

“While Sinclair was buying, it was also selling.

“It said it would spin off its CW affiliate in San Antonio (KMYS) and its MNT affiliate in Cincinnati (WSTR) to Deerfield Media Inc., presumably to comply with the FCC ownership limits. In the deal, Deerfield also picks up an option to buy two of the stations it is acquiring from Newport, WPMI-WJTC Mobile, Ala.-Pensacola, Fla.

“Sinclair said it intends to ‘provide sales and other non-programming services to each of these four stations pursuant to shared services and joint sales agreements.’

“In yet another deal, Sinclair said it is buying WTTA Tampa-St. Petersburg from Bay Television Inc. for $40 million. Since 1998, Sinclair has operated WTTA pursuant to a local marketing agreement.”

And that was the start of the Deerfield connection!

Even more telling is that Deerfield’s WUTV moved from Channel 24 (24.1) to 45.2, which is a subchannel of Sinclair’s WBFF! The website doesn’t tell why. It just explains to viewers watching over the air with an antenna how to rescan, but the reason is really the FCC’s recent spectrum auction.

With three stations realistically (unless you prefer names over control), Sinclair was in a great position to sell off some spectrum space and make even more money. This website shows Channel 24 will go off the air and the owner (or operator?) will get $122,912,964 for its spectrum.

So for those of you in Baltimore, do you need to reach the newsroom, are you looking for a job (Would they hire me for my investigative work?), or interested in inspecting the FCC public file of any of the three stations? All the information is the same, from address to phone numbers, and we already established three stations in one city are not allowed!

Why was the FCC the last to find out? Or did it know and ignore the facts for political reasons?hsh Howard Stirk Holdings

To the next perspective buyer…

HSH stands for Howard Stirk Holdings, and is owned by Armstrong Williams. That’s now mostly true.

In a Broadcasting & Cable article on the news section of HSH’s website dated July, 2013, Williams mentions suing the FCC because it

“adopted a new rule restricting joint sales agreements (JSAs) between television broadcasters in the same market.”

He claimed,

“It effectively slams the door shut on an important gateway to enhancing localism, viewpoint diversity, and opportunities in broadcast television ownership by minorities and underrepresented groups.”

But there’s more.

Armstrong Williams talked about the impact of a March 31, 2014, Federal Communications Commission (FCC) ruling that television station owners cannot control more than one station in the same local market via the use of joint sales agreements and shared services agreements, often known as “sidecar” deals. Mr. Armstrong, who owns two TV stations through a sidecar agreement with Sinclair Broadcasting, argued that the ruling could cause minority owners, and small station owners more generally, to be forced out of existence.”

That’s from a C-SPAN article on the news section of HSH’s website dated April, 2014, where you can watch the whole interview.

Washington Times article from a few weeks earlier, on the same News page as the others on HSH’s website, said,

“The FCC, backed by the Obama administration Justice Department, argues that broadcasters have used the shared-service, or “sidecar,” arrangements to circumvent long-standing rules against owning multiple television stations in a single market, allowing them to raise ad prices and weaken market competition.”

It seemed every article in HSH’s News section mentioned Sinclair or those joint sales agreements designed to get by without abiding by the FCC’s ownership rules!

In other words, he was a great partner for Sinclair since he’s a minority (but without the views of most other minorities) and they’re both making money by using each other!

But I found it eventually gets somewhat better.

Wikipedia said Williams helped Sinclair buy Barrington Broadcasting in late 2013, so he got stations in Flint, MI, and Myrtle Beach, SC, but they remain operated by Sinclair. They’re actually his only stations run by Sinclair and remember, at the time, his company was accused of “acting as a ‘sidecar’ of Sinclair to skirt FCC ownership rules.”

But that was then.

A year later, he actually, really bought three stations from Sinclair: one in Charleston and two in Alabama. So they’ve been in business several times, and it may not be over.

That means as of now, Howard Stirk Holdings owns seven stations. Two are in the same Anniston-Tuscaloosa-Birmingham, Ala., market, and Williams’ first two are still run by Sinclair. Now, after other purchases, he’s expecting to buy three more if the Sinclair-Tribune merger happens.

standard media

Then there’s Standard Media GroupI hadn’t heard of them either. Its website says Standard General was founded in 2007 and is pretty much an investment adviser, but getting into the broadcasting business. I was skeptical since investment firms are more likely to sell than others with broadcasting in their blood, especially ones who invest in their communities.

However, I learned it’s owned by Soohyung Kim, who started Standard Media to buy nine of the 23 stations. He was a hedge fund manager involved with Media General, Young Broadcasting and LIN before Media General bought them, and Nexstar bought Media General. He owns no TV stations now, and he’s bringing his winning team from years ago with him.

Standard said if the deal goes through, it’ll fulfill its “goal of swiftly building a substantial broadcast television group with a strong and diverse voice” that includes four state capitals.

meredith corporation

TVSpy noted in St. Louis, where Sinclair owns a station and Tribune owns two, Meredith Corp. “signed a deal to acquire KPLR (CW) from Tribune for $65 million, pairing it with KMOV (CBS) which Meredith has owned since 2013.” But that may not happen, even if there is a merger. The Justice Department denied the company the immediate right to create the duopoly.

Sinclair already owns KDNL (ABC) and would also own Tribune’s KTVI (FOX). Great for owners’ synergies. Bad for the number of independent voices in such a big city. Which do you care more about?

We mentioned New York and Chicago, and those plans have changed.

Politico reported on a potential Sinclair news channel, even though Sinclair execs gave denied it. The channel may be just a few hours in the evening to challenge Fox News for conservative viewers. Fox News is carried in more than 90 million homes, compared to 80 million for WGN America which Sinclair would own if regulators approve, and 55 million for the Tennis Channel which Sinclair already owns. It would be based in Washington, DC, where the company already owns local station WJLA-7 and produces some of its national content.

Fox wasn’t on the list of buyers while negotiations were taking place.

Jessell of TVNewsCheck was more direct, saying all Sinclair

“has to do now is wrap up its negotiations with Fox. I don’t know what’s delaying that deal, except that neither Fox nor Sinclair is famous for making concessions. Once Sinclair does that, it can finalize its application and the FCC can complete it long-stalled review.”

That’s where I wrote,

Those greedy bastards are going to end up screwing everything up for themselves (which I’d love to see happen), and you’ve only read about half of the plans, so far!

NFL LogoFox wanted stations in football cities so badly, it got its hands on Cox’s KTVU in San Francisco (with an NFC team, the 49ers, and the AFC Oakland Raiders across the bay will now be moving to Las Vegas in 2020) and gave Cox its own stations in Boston (the New England Patriots are AFC) and Memphis (no NFL team).

Football teams have moved, but the cities Fox wants are Seattle (especially because it’s NFC), and Cleveland, Denver and Miami (because they have AFC teams). San Diego and St. Louis no longer have teams, so Fox isn’t interested in Tribune’s Fox affiliates in those cities.

Seattle, Cleveland and Denver should be easy. The stations are already Fox affiliates so prime-time programming and the amount of news shouldn’t change. And Fox has leverage because it can threaten to take away its affiliation from those stations, lowering their value, if they’re sold to another company.

Miami is a different story. Fox has a very good affiliate, WSVN-7, owned by Ed Ansin’s Sunbeam Television. The ratings are great, the Miami Dolphins play there, and as an AFC team, they show up on Fox on a few Sundays and may also now be seen on Fox on Thursdays.

Fox WSFL WSVN

But the station that’s available is Tribune’s WSFL-39, a CW affiliate without a news department despite a few morning attempts. Should Fox dump WSVN and start from scratch with WSFL? Would it be worth the effort?

In another article, Jessell analyzed the ownership numbers in this case, and you try to figure out what’s true.

He led by saying,

“Sinclair is telling the FCC that its coverage after spinoffs from its merger with Tribune will be just 58.7%. But that’s for regulatory purposes. (In other words, with the revived UHF discount that only counts channels 14 and up as half the audience of the market.) In the real world, where it matters, Sinclair’s national reach will be 66.3% — a full two-thirds of TV homes.”

But he said Sinclair is telling the FCC

“the coverage of the group will be just 58.7% and, with the UHF discount, below the statutory 39% cap. But those percentages are for regulatory consumption, not the real world.”

So there’s a 7.6-point disparity, the difference between 58.7% and 66.3%. How’d that happen? And don’t forget about the part,

“with the UHF discount, below the statutory 39% cap.”

Jessell explained Sinclair

“is claiming 58% because it is not counting stations in three big markets — WGN Chicago, KDAF Dallas, KIAH Houston — that it is spinning off to closely affiliated companies. Without those markets and the discount in effect, Sinclair’s reach will be just 37.39%, safely below the 39% cap.”

Plus, with Dallas and Houston (but not Chicago),

“Sinclair has put additional distance between itself and Cunningham” but will “have an option to buy the stations should the FCC ever ease the rules to allow it.”

So this is Jessell’s bottom line:

“So, again, for regulatory purposes, Sinclair’s reach will be 58.7% without the discount and 37.39% with it.

“But I don’t think that is reality. Those are not the numbers that Sinclair will be showing national advertisers, MVPDs, vendors and others with which it does business.

“In the real world, Sinclair will have a lot of control over Chicago and some control over Dallas and Houston, and its effective national reach will be 66.3%. (For the record, its reach with the UHF discount will be 41.1%, two points over the cap, but that will not matter because regulators will not be counting the three markets.)”

But Deadline noted Sinclair

“has faced further attention in recent weeks over a push to have local anchors at its stations read company-scripted messages, including a recent prohibition against fake news. The spots … struck many in media as too closely aligned with the dismissive rhetoric of President Donald Trump.”

So the company hasn’t been doing itself any favors.

On May 8, I showed you how the FCC had just published a letter from FCC Chairman Ajit Pai’s response to Sen. Dick Durbin (D-IL) regarding the proposed Sinclair-Tribune merger. Sen. Durbin and others have been especially concerned about Tribune’s WGN-TV9 in Chicago.

Pai to Durbin
https://transition.fcc.gov/Daily_Releases/Daily_Business/2018/db0507/DOC-350587A1.pdf

And the last story I wrote was on May 9. “BREAKING NEWS: Fox buying Miami station” may have gotten more views than any other post.

The negotiation spat between Fox and Sinclair ended with 21st Century Fox announcing it would buy the seven TV stations Tribune owned that had to be spun off to not exceed ownership limits, but had not yet officially found buyers.

“21st Century Fox today announced a definitive agreement with Sinclair Broadcast Group and Tribune Media Company to acquire seven television stations for approximately $910 million. The transaction will grow Fox Television Stations’ (FTS) coverage to nearly half of all U.S. households, and its market presence to 19 of the top 20 DMAs, including the addition of key markets that align with Fox’s sports rights,” it said.

fox chart

Six of those seven are Fox affiliates, so not much would’ve changed for viewers in those cities.

Fox WSFL

Yet, the Miami/Fort Lauderdale station is a CW affiliate. What would become of it, and also Sunbeam-owned Fox affiliate powerhouse WSVN? We may never know since the merger looks dead.

The CEO of Fox Television Stations, Jack Abernethy, said,

“This transaction illustrates Fox’s commitment to local broadcasting and we are pleased to add these stations to our existing portfolio. With this acquisition, we will now compete in 19 of the top 20 markets and have a significantly larger presence in the west, which will enhance our already strong platform. This expansion will further enrich our valuable alignments with the NFL, including our new Thursday Night Football rights, MLB and college sports assets. We are also happy to add many talented Tribune employees to our group, some of whom we know well.”

That’s because Fox actually used to own the Cleveland, Salt Lake City and Denver stations but sold them to a company called Local TV which sold itself to Tribune. So much for Fox actually caring about those communities when it owned those stations, sold them, and now wants them back. I hope the people of Cleveland, Salt Lake City and Denver will challenge Fox’s proposed buy with the FCC.

Also, Fox entered into new network affiliation agreements with Sinclair and the stations it doesn’t own but still operates.

Of course, where would Fox find that approximately $910 million to buy the stations? By selling off most of its assets like its movie and TV studio, cable networks FX and National Geographic, and regional sports networks to Disney – keeping just its network, TV stations, Fox News Channel, Fox Business Network and FS1/FS2 cable sports channels.

Remember, a much leaner “New Fox” network plans to concentrate more on live events, specifically NFL football.

But it may not matter due to this point from the Fox news release:

“Completion of the stations acquisition by 21st Century Fox is anticipated for the second half of this calendar year, subject to the satisfaction of customary closing conditions, including regulatory approvals, and is expected to be coordinated with the closing of Sinclair’s proposed acquisition of Tribune.”

And that’s not so likely anymore.

Since the merger announcement, there have been many holdups. Most notably is opposition from people who hate Sinclair’s conservative leanings, must-run commentaries on its local stations and its history of forced network preemptions. There are also those who think Sinclair was already too big of a company and adding Tribune to it would make it much larger.

After a merger, Sinclair said in a news release,

“Pro forma for the Tribune acquisition and related station divestitures, the Company will own, operate and/or provide services to 215 television stations in 102 markets.”

And I quickly responded,

“Something tells me that company doesn’t know what to say and brags too much, which makes its opponents angrier.”

Deadline magazine said that’ll “reach 62% of U.S. households, but 37.4% according to FCC rules limiting station ownership” — which is 39 percent.

Sinclair owner/chairman David Smith (who also controls Cunningham with his siblings, even though it claims to be independent) was apparently smart enough to stay quiet.

WSFL was supposed to be spun off and not take part in any Sinclair-Tribune merger, since Fox was concentrating on cities in the NFL’s NFC conference. The Miami Dolphins are in the AFC, and WSFL is a CW affiliate without a news department.

I suggested Fox look at CBS, making money while owning CW affiliates (it owns half of the CW) and also independent stations, while letting outside companies with either stronger reach or good news departments have the CBS affiliations.

I predicted WSFL losing its CW affiliation since CBS owns two stations in the market. There’s the CBS station WFOR-4, and WBFS-33 which became a MyNetworkTV affiliate to please CW partner Tribune, since CBS got the CW in so many other cities back when the WB and UPN combined.

If Fox ever gets WSFL, it would make perfect sense for CBS to move the CW affiliation to WBFS. WSFL would be a MyNetworkTV affiliate which is perfectly fine, since Fox owns MyNetworkTV.

Fox would have a place to air any network programming WSVN preempts, its Fox News would have access to WSVN’s powerful news coverage like it does from any other affiliate, it could say it owns a station in Miami/Fort Lauderdale to give advertisers more scale, and it could program and promote WSFL and its MyNetworkTV shows any way it wants.

That’s how I saw the perfect solution.

Of course, nobody is perfect and Fox doesn’t always make the right decisions.

It could start news at WSFL. That would give viewers another choice for news but be a kick in the face to WSVN and confuse the viewers, since the market is already splintered with popular stations in two languages.

And I had to say, the Fox Television Stations Group website never posted the acquisition news. But it did show press releases from Feb. 8, 2017 and Nov. 3, 2016.

Instead, it looks like there will be no Sinclair-Tribune merger. The FCC’s administrative judge could take a year to make a decision, and these companies – not to mention their employees – have ants in their pants.

Part of Sinclair’s statement last Monday, July 16, said,

“During these discussions and in our filings with the FCC, we have been completely transparent about every aspect of the proposed transaction. We have fully identified who the buyers are and the terms under which stations would be sold to such buyer, including any ongoing relationship we would have with any such stations after the sales. … At no time have we withheld information or misled the FCC in any manner whatsoever with respect to the relationships or the structure of those relationships proposed as part of the Tribune acquisition. Any suggestion to the contrary is unfounded and without factual basis. … As a result and in light of the ongoing and constructive dialogue we had with the FCC during the past year, we were *shocked* (my asterisks) that concerns are now being raised.

And with Cox coming in and putting its stations up for sale, the dynamics may have completely changed.

cox media group

I’m going to call it a night and return tomorrow with all the details of what went wrong (or right, if you saw things my way).

Each of the articles above came with details and pictures, and some with videos.

Please leave your comments in the section below, and don’t miss out. If you like what you read here, subscribe to CohenConnect.com with either your email address or WordPress account, and get a notice whenever I publish. I’m also available for writing/web contract work.

Media mega-merger may be moving closer, impacting Miami

I’ve avoided writing much about Sinclair Broadcast Group trying to buy Tribune Media because I’ve been busy and I don’t want to jinx any possibility the merger will fall through.

But there has been some news, and the biggest for a local TV market could be Miami/Fort Lauderdale (of course!).

feature no sinclair tribune miami

You’ll remember, one of the biggest, nastiest TV station groups has been trying to buy another biggie. (Click here for the official Federal Communications Commission docket.)

Of course, I’m referring to Sinclair Broadcast Group doing everything it can to spread its conservative information campaign to most of the U.S. that the company doesn’t already reach.

One week ago, TVNewsCheck‘s Harry Jessell noted,

For nearly a year, Sinclair has been screwing around, working every angle in its grim determination to hang on to every Tribune station it could in the face of FCC ownership caps and Justice Department antitrust limits.”

But the deal announced in May, 2017, still hasn’t happened.

To follow through, it would need government approval: from the Justice Department for antitrust worries and the FCC to approve ownership limits. (And Sinclair may have already gotten “help” from FCC chairman Ajit Pai, who was selected by President Trump. Pai is now under investigation by his own agency’s inspector general. Keep reading.)

— UPDATE: The FCC inspector general cleared Chairman Ajit Pai of being unfairly biased in favor of the Sinclair Broadcast Group–Tribune Media merger. —

The $3.9 billion deal would still require a number of stations to be sold. The questions partially responsible for holding things up were how many, and in which cities? About six weeks ago, I explained TV ownership limits are very complicated, with four rules in play: 1. national TV ownership, 2. local TV multiple ownership, 3. the number of independently owned “media voices” – 4. and at least one of the stations is not ranked among the top four stations in the DMA (that’s the “designated market area” or city, and ranking based on audience share), and at least eight independently owned TV stations would remain in the market after the proposed combination.

angry womanPlus, there have been literally thousands of complaints from activists who know how important this is. Click here to see 4,497 total FCC filings since July 5, 2017, including 891 in the past 30 days. THANK YOU if your name is on the list! Keep reading for directions on how to say no.

Now, click here to see some of the “33 concurrently filed applications on FCC Form 315 that seek the Commission’s consent to a transaction,” back in July, 2017, and what the companies consider “Public interest benefits of the transaction.” You’ll soon know better if you actually believe there are public interest benefits! You’ll also notice the companies fighting for every last station they could, to grow even larger.

sinclair broadcast group

On April 24, The Wall Street Journal reported Sinclair “reached deals to sell nearly two dozen television stations as it works to get regulators to sign off on its purchase of Tribune.”

Sinclair said it’ll spin off 23 stations in 18 markets – some owned by Sinclair and others by Tribune.

Also on April 24, Deadline magazine reported, “Sinclair expects the transactions for the station sales to close the same day the Tribune deal is approved, and now estimates it all will be wrapped up by June.”

Folks, that’s next month!

So let’s take a look at the “List of stations to be divested,” filed with the FCC in April. Click here for the complete 138 pages.

These are the stations currently owned by Sinclair that would be divested only if the merger goes through…

sinclair divest

and these are the stations currently owned by Tribune.

tribune divest

So now we know who is expected to own the stations a Sinclair-Tribune combination would not be allowed to keep. Unfortunately, it’s not as clear as the charts above that list call letters and cities.

First, the official licensee could have a different name but we know we’re dealing with stations owned by Sinclair and Tribune.

More importantly and suspiciously is the last column, called Buyer. That’s because Sinclair has been the king of using shell companies to get around ownership rules. These corporations are either owned by the Smith family that owns Sinclair, or others that let Sinclair program them through local marketing agreements. Sinclair doesn’t technically own all those stations, but operates them as if they do.

So let’s take a look.

Cunningham Broadcasting

Cunningham Broadcasting Corporation is the most controversial. It calls itself “an independent television broadcast company that, together with its subsidiaries, owns and/or operates 20 television stations in 18 markets across the United States.”

First, notice “owns and/or operates.”

As for independent, Wednesday, Forbes magazine (not a liberal publication) put out an article called “Meet the Billionaire Clan Behind the Media Outlet Liberals Love To Hate” and it described Sinclair’s owners and their ties to Cunningham.

“The Smith family, which includes brothers David, Robert, Frederick, J. Duncan and a flurry of family trusts, is worth a combined $1.2 billion, Forbes estimates, based on the family members’ ownership of stock in publicly traded Sinclair Broadcasting, share sales over the past 15 years, dividends and some private assets,” it read.

“Revenues have increased 281% over the last decade to $2.7 billion in 2017, while Sinclair’s share price has increased 367% over the same period, pushing its market capitalization up to a recent $3 billion. All of this growth has occurred under the control and oversight of David Smith, 67, the chairman and former CEO of the company, as well as the son of the company’s founder Julian Sinclair Smith,” it continued.

Jessell of TVNewsCheck reported, “Its financials are consolidated with Sinclair’s in its SEC filings and earnings reports.”

Forbes quoted Daniel Kurnos, an analyst at Benchmark Capital, as saying, “Sinclair plays some of the hardest ball of anyone,” from acquiring stations to negotiating advertisement pricing and retransmission fees, which are some of the highest in the business.

SIDEBAR: Wednesday, The TV Answer Man Phillip Swann reported PlayStation Vue removed Sinclair-owned local stations affiliated with Big 4 networks from its streaming lineup without an explanation. Just Tuesday, subscribers got an e-mail that live channels would be replaced May 1 (that day) with an On-Demand version.

PlayStation Vue

Sinclair said it pulled the stations and blamed “Sony (for) failing to comply with certain contractual provisions.” It didn’t elaborate but urged Sony subscribers to consider other video distributor options, including Sony competitor YouTube TV.

Sony hasn’t commented.

The Baltimore Sun reports, “Sony describes PlayStation Vue as a live streaming TV service for up to five devices at once that offers sports, news and other programs along with premium channels and a cloud DVR.”

BACK TO THE STORY: Under David Smith, who wouldn’t comment for the article, Sinclair went from three cities – Baltimore, Pittsburgh and Columbus – to what it is today.

sinclair before tribune
Sinclair today, without Tribune

“To ‘purely make money’ in a scale-oriented business, David bought up as many broadcast stations as possible. First he concentrated on secondary markets, like Memphis, St. Louis and San Antonio, where operation costs were cheaper than in places like New York or Chicago.

“‘I believed that certain things were going to happen in the television industry, the most important being consolidation,’” David told Forbes in 1996.

So much for public service!

But then came the controversial Cunningham, arguably rigging the system.

“In the 1990s, the company pioneered a technique to circumvent an FCC rule limiting ownership of more than one TV station per metro area. David’s mother, Carolyn Smith, started another business, Cunningham Broadcasting. Following Carolyn’s death in 2012, most of the ownership of Cunningham Broadcasting shifted to a family trust, which is included in the overall Smith family valuation.”

So Cunningham really isn’t independent, as its website claims!

Known as “Glencairn, Ltd. prior to 2002,” it got into some trouble back in 1998. In July of that year, Broadcasting & Cable magazine reported,

PUSH pushing FCC over Sinclair/Glencairn

“The Rainbow/PUSH Coalition is raising questions at the FCC about whether Sinclair Broadcasting is exercising control over a minority-headed TV group with which it has struck a series of local marketing agreements (LMAs).

“In a July 1 filing at the FCC, Rainbow/PUSH said it plans to study whether the LMA deal between Sinclair’s KABB(TV) San Antonio and Glencairn’s KRRT(TV) Kerrville, Tex., violates the commission’s prohibition against common ownership of two local stations. (The rules were more strict then.)

“‘Rainbow/PUSH has not had an opportunity to fully research this matter, and thus preserves here the question of whether Glencaim is the alter ego of Sinclair,’ the group told the FCC.”

More than three years later, in Dec., 2001, Broadcasting & Cable was finally able to report the decision.

FCC fines Sinclair for Glencairn control

“Sinclair Broadcasting exercised illegal control of business partner Glencairn Ltd., the FCC found Monday after three years of investigating the companies’ relationship.

“Each company was fined $40,000 but escaped tougher sanction sought by civil rights groups-a government rejection of Sinclair’s request to buy 14 stations from Sullivan Broadcasting.

“The commission’s three Republicans judged that the companies were liable for misinterpreting FCC policies, but found they did not intentionally mislead the agency about compliance.

“Democratic Commissioner Michael Copps wanted the FCC to pursue a tougher sanction and voted to designate the station sales for hearing in front of an administrative law judge.

“Sinclair has repeatedly ‘stretched the limits’ of FCC ownership rules, he said.”

lisa asher
http://cunninghambroadcasting.com/about-us/

Back to the Forbes article, last year, Cunningham paid Sinclair more than $120 million for running its stations. Also, Cunningham admits its treasurer and chief financial officer, Lisa Asher, worked as Sinclair’s assistant controller before moving over in 2002.

So we know Cunningham, set to buy Tribune stations in Dallas and Houston, appears to be a shell company, and we can make bets who will operate and control it if the Sinclair-Tribune deal ever comes to fruition.

But there’s a lot more evidence.

Cunningham is headquartered near Sinclair in Maryland, which is very convenient since

“Cunningham Broadcasting owns the FCC broadcast licenses and operates through various management agreements with Sinclair Broadcast Group, Inc. WNUV-TV in Baltimore, Maryland; WTTE-TV in Columbus, Ohio; WMYA-TV in Anderson, South Carolina; WRGT-TV in Dayton, Ohio; WVAH-TV in Charleston, West Virginia; WDBB-TV in Bessemer, Alabama; WBSF-TV in Flint, Michigan; WGTU-TV in Traverse City, Michigan; KBVU-TV in Eureka, California; KCVU-TV in Chico-Redding, California; WEMT-TV in Greeneville, Tennessee; WPFO-TV in Portland, Maine; WYDO-TV in Greenville, North Carolina; and KRNV-TV & KENV-TV in Reno, Nevada.”

Fox TV stations

Looking at its list of stations — something the Fox Television Stations Group never posted on its own website despite me calling them out for it herehere, here, here (so far in no particular order, although I may have missed a couple), and my favorite, here — you may realize Sinclair recently bought Bonten Media Group (Disclosure: I used to be Digital Media Manager at the former Bonten’s WCYB but left before the sale.) but Cunningham bought the stations Bonten operated. Notice those stations listed on the website have no websites of their own. And I’ll get back to Fox later. I’ll bet they can’t wait!

WBFFAnother dead giveaway is that Cunningham is based at 2000 W. 41st Street, Baltimore MD 21211 and coincidentally, Sinclair flagship WBFF-45 (Fox affiliate) has the same address!

But not just WBFF.

WNUVSo is WNUV-54 (CW affiliate), which says it’s “owned and operated by Cunningham Broadcasting Corporation and receives certain services from an affiliation of Sinclair Broadcast Group.”

(Sinclair, the corporation, is based in nearby Hunt Valley, MD.)

But that’s not all, folks!

WUTBThere’s still WUTV-24 (MyNetworkTV affiliate), with the same look as the other websites, which says it’s “a SBG Television affiliate owned and operated by Deerfield Media, Inc and receives certain services from an affiliation of Sinclair Broadcast Group.”

Deerfield, with apparently no website of its own (so see Wikipedia’s take), is another of the shell companies, formed in 2012 but not involved in the proposed Tribune transaction.

How’d that happen?

In Nov., 2012, TVNewsCheck reported,

“For years (before 2012), Fox Television Stations’ WUTB Baltimore gave Fox considerable leverage in its sometime contentious affiliation negotiations with Sinclair Broadcast Group.

“If Sinclair ever got out of line, Fox could threaten to yank its affiliation from Sinclair’s flagship station WBFF Baltimore and move it to WUTB.

“But last May, Fox relinquished that leverage when it extended its affiliation with WBFF and 18 other Sinclair stations for five years starting Jan. 1, 2013, and granted Sinclair an option to buy WUTB.

“Sinclair is now exercising that option by assigning it to a third party, Deerfield LLC.

“According to an FCC filing seeking approval of the deal, Deerfield is buying WUTB and allowing Sinclair to run the MNT affiliate through joint sales and shared services agreements.

“The deal gives Sinclair a virtual triopoly in Baltimore where it also operates CW affiliate WNUV, which is owned by Cunningham Broadcasting, Sinclair’s longtime duopoly partner that is controlled by trusts for the children of Sinclair’s controlling shareholders.”

But Sinclair and Deerfield were already in cahoots.

Months earlier, in July, 2012, MarketWatch reported Sinclair intended

“to buy six television stations from Newport Television LLC for $412.5 million and agreed to buy Bay Television Inc. for $40 million. … Sinclair also agreed to sell the license assets of its San Antonio station KMYS and its WSTR station in Cincinnati to Deerfield Media Inc. Sinclair will also assign Deerfield the right to buy the license assets of WPMI and WJTC in the Mobile/Pensacola market, after which Sinclair will provide sales and other non-programming services to each of these four stations under shared services and joint sales agreements.”

The next day, TVNewsCheck reported,

“Sinclair Broadcast is getting six stations in five markets for $412.5 million:
— Cincinnati (DMA 35) — WKRC (CBS)
— San Antonio, Texas (DMA 36) — WOAI (NBC)
— Harrisburg-Lancaster (DMA 41) — WHP (CBS)
— Mobile, Ala.-Pensacola, Fla. (DMA 60) — WPMI (NBC) and WJTC (Ind.)
— Wichita, Kan. (DMA 67) — KSAS (Fox)

“Sinclair is also acquiring Newport’s rights to operate third-party duopoly stations in Harrisburg, Pa. (CW affiliate WLYH), and Wichita, Kan. (MNT affiliate KMTW). Those rights include options to buy the stations. …

“While Sinclair was buying, it was also selling.

“It said it would spin off its CW affiliate in San Antonio (KMYS) and its MNT affiliate in Cincinnati (WSTR) to Deerfield Media Inc., presumably to comply with the FCC ownership limits. In the deal, Deerfield also picks up an option to buy two of the stations it is acquiring from Newport, WPMI-WJTC Mobile, Ala.-Pensacola, Fla.

“Sinclair said it intends to ‘provide sales and other non-programming services to each of these four stations pursuant to shared services and joint sales agreements.’

“In yet another deal, Sinclair said it is buying WTTA Tampa-St. Petersburg from Bay Television Inc. for $40 million. Since 1998, Sinclair has operated WTTA pursuant to a local marketing agreement.”

And that was the start of the Deerfield connection!

tv airwaves

Even more telling is that Deerfield’s WUTV moved from Channel 24 (24.1) to 45.2, which is a subchannel of Sinclair’s WBFF! The website doesn’t tell why. It just explains to viewers watching over the air with an antenna how to rescan, but the reason is really the FCC’s recent spectrum auction.

With three stations realistically (unless you prefer names over control), Sinclair was in a great position to sell off some spectrum space and make even more money. This website shows Channel 24 will go off the air and the owner (or operator?) will get $122,912,964 for its spectrum.

SIDEBAR: The purpose of the reverse auction is “broadcaster licensees bid (low price) to relinquish spectrum usage rights.” Then, “the FCC will reauthorize and relicense the facilities of the remaining broadcast television stations that receive new channel assignments in the repacking” so the remaining stations are close together and that will happen in waves because there are so many. And finally the FCC will sell that spectrum to commercial wireless service providers (high price) to expand mobile broadband services. (That has all happened already except for stations moving to their new assignments.)

It looks like stations sold $10 billion of spectrum and wireless providers bought $19 billion, so the FCC made money.

BACK TO OUR STORY: So for those of you in Baltimore, do you need to reach the newsroom, are you looking for a job (Would they hire me for my investigative work?), or interested in inspecting the FCC public file of any of the three stations? All the information is the same, from address to phone numbers, and we already established three stations in one city are not allowed!

To the next perspective buyer…

hsh Howard Stirk HoldingsHSH stands for Howard Stirk Holdings, and is owned by conservative journalist, entrepreneur and producer Armstrong Williams. Wikipedia described Howard Stirk Holdings as “a media company affiliated with Sinclair Broadcasting that has made numerous television station purchases.”

Don’t believe it? It’s somewhat true, after a controversial beginning.

In a Broadcasting & Cable article on the news section of HSH’s website dated July, 2013, and was written in first-person, Williams mentions suing the FCC for not reviewing

“its broadcast ownership rules every four years. …

“This is one of the reasons why my company, Howard Stirk Holdings, LLC (HSH), has sued the FCC. As an African American licensee of two television stations, I believe that by refusing to complete its 2010 quadrennial review, the FCC has unlawfully withheld taking an action required by Congress and the law, and thus is arbitrarily and capriciously retaining burdensome regulations that are no longer in the public interest.”

Williams was angry the FCC “adopted a new rule restricting joint sales agreements (JSAs) between television broadcasters in the same market.”

He claimed, “It effectively slams the door shut on an important gateway to enhancing localism, viewpoint diversity, and opportunities in broadcast television ownership by minorities and underrepresented groups.”

But there’s more.

Armstrong Williams talked about the impact of a March 31, 2014, Federal Communications Commission (FCC) ruling that television station owners cannot control more than one station in the same local market via the use of joint sales agreements and shared services agreements, often known as “sidecar” deals. Mr. Armstrong, who owns two TV stations through a sidecar agreement with Sinclair Broadcasting, argued that the ruling could cause minority owners, and small station owners more generally, to be forced out of existence.”

That’s from a C-SPAN article on the news section of HSH’s website dated April, 2014, where you can watch the whole interview.

Washington Times article from a few weeks earlier, on the same News page as the others on HSH’s website, said,

“The FCC, backed by the Obama administration Justice Department, argues that broadcasters have used the shared-service, or “sidecar,” arrangements to circumvent long-standing rules against owning multiple television stations in a single market, allowing them to raise ad prices and weaken market competition.”

armstrong williamsWilliams and his supporters suggest a more partisan motive: his conservative views.

In fact, it seems every article in HSH’s News section mentions Sinclair or those joint sales agreements designed to get by without abiding by the FCC’s ownership rules!

In other words, he was a great partner for Sinclair since he’s a minority (but without the views of most other minorities) and they’re both making money by using each other!

But I found it eventually gets somewhat better.

hsh jobs
http://www.hsh.media/search-openings/

Howard Stirk Holdings’ website’s Content Creation page calls it “a leading broadcast television company” but have you heard of it before starting this article? The page doesn’t say how many TV stations it owns or operates on its own. Even the page to search job openings offers no links (except the top navigation which doesn’t say much), and that includes its Terms of Service and Privacy Policy.

Something was obviously wrong, so I turned to the FCC and found no entities or file names from before 2012.

Then I went to Wikipedia and read Williams helped Sinclair buy Barrington Broadcasting in late 2013, so he got stations in Flint, MI, and Myrtle Beach, SC, but they remain operated by Sinclair. They’re actually his only stations run by Sinclair and remember, at the time, his company was accused of “acting as a ‘sidecar’ of Sinclair to skirt FCC ownership rules.”

But that was then.

A year later, he actually, really bought three stations from Sinclair: one in Charleston and two in Alabama.

Charleston wasn’t planned. The first two paragraphs from a Sept., 2014, Broadcasting & Cable magazine article is posted on HSH’s website’s News section.

Howard Stirk Holdings Grabs WCIV for $50,000

“Howard Stirk Holdings, run by Armstrong Williams, has agreed to acquire WCIV Charleston for $50,000. Sinclair picked up WCIV, an ABC affiliate, when it acquired Allbritton. While Howard Stirk is acquiring the license, among other assets, it and Sinclair will share some aspects related to the station, and Sinclair will provide services.

“‘We’ll continue some of the wonderful business relationships we have with them,’ said Armstrong Williams, principal at Howard Stirk Holdings.”

WCIV’s services came up because of a tangled web of local marketing agreements. There were ownership conflicts over licenses and other assets of three stations.

charleston 36Sinclair owned MyNetworkTV affiliate WMMP-36 for years. Then, in 2001, it bought and spun off Fox affiliate WTAT-24 to Glencairn (to become Cunningham) and crafted a local marketing agreement between the two stations. That got Sinclair fined Sinclair $40,000 for illegally controlling a duopoly.

But in 2013, Allbritton sold its entire television group, including ABC affiliate WCIV-4, to Sinclair, which intended to sell WMMP’s license but still control it. Thus, three stations!

Unfortunately for Sinclair, WMMP had that local marketing agreement with WTAT. So Sinclair decided to cut ties from WTAT, keep the more established WCIV and sell WMMP.charleston 4

But Sinclair told the FCC it couldn’t find a buyer for WMMP, so it would shut down WCIV and keep WMMP because its facilities were better — but move WCIV’s affiliation and all its programming to WMMP. Then, WMMP’s programming including MyNetworkTV would move to a subchannel.

Instead, Sinclair filed to have WCIV’s license sold to HSH to avoid shutting it down. Thus, the low price of $50,000. Then, the two stations swapped licenses, Sinclair let Williams’ WCIV share studio space at WMMP’s facilities and Williams explained he hoped to “continue some of the wonderful business relationships we have with [Sinclair]” through the deal — but operated independently from Sinclair.

Shortly after, this page on the company’s website’s News section lifts the first four paragraphs from a Feb., 2015, Broadcasting & Cable magazine article.

Howard Stirk Acquires KVMY Las Vegas

“Howard Stirk Holdings has agreed to acquire KVMY, the Las Vegas MyNetworkTV affiliate, for $150,000. Armstrong Williams is the principal at Howard Stirk, which is closely aligned with Sinclair. The price reflects $25,000 for the equity assets, including the FCC license, and $125,000 for the transmission assets.

“According to the following, Howard Stirk ‘acknowledges that it is not buying the Business of KVMY-TV as a going concern.’” (There was a call letter and affiliation change, but Howard Stirk Holdings runs several digital subchannel networks on the signal.)

“In September, Sinclair agreed to acquire NBC affiliate KSNV Las Vegas for $120 million. It also owns CW outlet KVCW.

“Last year, Howard Stirk Holdings acquired the license and other assets to WCIV Charleston from Sinclair for $50,000.”

So they’ve been in business several times, and it may not be over.

George W BushSome more about Williams: In 2004, the Bush administration paid him $240,000 to promote the No Child Left Behind (NCLB) law on his nationally syndicated TV show and urge other black journalists to do the same. USA Today reported the campaign was part of an effort to build support among black families and Williams was “to regularly comment on NCLB during the course of his broadcasts” and interview Education Secretary Rod Paige for TV and radio spots that aired during the show. Williams said he understood critics could find the arrangement unethical, but “I wanted to do it because it’s something I believe in.”

Two years ago, The Washington Post reported Williams settled a sexual harassment and retaliation suit filed by a former salesman at a DC Jos. A. Bank. Court records reportedly showed the complaint alleged Williams had sought sexual favors after befriending and mentoring the other man. That man did get jobs at the Washington Times and then at a Howard Stirk Holdings TV station, but he lost that job.

It wasn’t Williams’ first such situation.gavel judge

In 1997, Williams’ former personal trainer-turned-producer sued him, contending he “repeatedly kissed and fondled him for almost two years,” before being fired. Williams claimed he was fired for incompetence. That case was also settled.

Bottom line: As of now, Howard Stirk Holdings owns seven stations. Two are in the same Anniston-Tuscaloosa-Birmingham, Ala., market, and Williams’ first two are still run by Sinclair. Now, after other purchases, he’s expecting to buy three more if the Sinclair-Tribune merger happens.

standard media

Then there’s Standard Media Group. I hadn’t heard of them either. Its website says Standard General was founded in 2007 and is pretty much an investment advisor, but getting into the broadcasting business. We’ll see how long that lasts. Investment firms are more likely to sell than others with broadcasting in their blood, especially ones who invest in their communities.

Now, if the deal goes through, it’ll fulfill its “goal of swiftly building a substantial broadcast television group with a strong and diverse voice” that includes four state capitals.

The stations are Fox affiliates except where noted: Oklahoma City, Grand Rapids, York PA, Greensboro NC (ABC), Richmond, Sinclair’s role in a Wilkes Barre Fox-CW-MyNetworkTV triopoly, and Des Moines.

meredith corporation

You may have noticed Meredith Corp. on the list of buyers. TVSpy noted Meredith “has signed a deal to acquire KPLR (CW) from Tribune for $65 million, pairing it with KMOV (CBS) which Meredith has owned since 2013. … Sinclair already owns KDNL (ABC) and will also own KTVI (FOX) in the market.” Great for owners’ synergies. Bad for the number of independent voices in such a big city. Which do you care more about?

WGN-TV

Of the other big city stations, Tribune’s legendary WGN-TV9 is supposed to go to WGN TV LLC but that’s really code for Steven Fader, a Maryland auto dealer and business associate to Sinclair chairman David Smith, for a mere $60 million. Sinclair would also have an option to buy WGN-TV outright within eight years and you know it’s counting on the FCC to relax its ownership rules even more within that time frame!

Concerning WGN, there are now plans for a Sinclair news channel. Yesterday, Politico reported,

“Sinclair Broadcast Group, which for months has denied any interest in challenging Fox News while awaiting approval of a merger with Tribune Co., is gearing up to do just that.”

TVNewser put it this way:

“Even though Sinclair CEO Chris Ripley has said a 24-hour national news network is not in the works, his boss (David) Smith seems to like the idea of a few hours of prime time opinion programming to challenge Fox News.”

Fox News is carried in more than 90 million homes, compared to 80 million for WGN America which Sinclair would own if regulators approve, and 55 million for the Tennis Channel which Sinclair already owns.

If your cable or satellite company doesn’t offer either of those last two, then expect it to get a call when any deal with Sinclair is about to expire.

Politico quotes “a person familiar” saying “Smith has been holding meetings with potential future employees, including former Fox News staff members, and laying out a vision for an evening block of opinion and news programming that would compete with Fox’s top-rated lineup.”

So, the discussions are over “a block of at least three hours, but also potentially up to six. Smith is settled, though, on basing his new operation in Washington, D.C.” That’s because the company already owns local station WJLA-7, where it produces some of its national content.

Greta Van Susteren Wikipedia
Wikipedia

One apparent Sinclair target is former Fox News host Greta Van Susteren, who left the network in Sept., 2016, and then had a short stint at MSNBC before signing on with Voice of America. Van Susteren wrote in an email she has spoken with Smith.

“If the Sinclair deal happens, I might talk to him further. … but it would have to be something that would not take me from VOA,” Van Susteren said.

“Other potential hires are former Fox anchor Eric Bolling and reporter James Rosen,” who both left Fox under sexual harassment allegations. Neither admitted whether they met with Smith or other Sinclair executives.

Talks with former Fox host Bill O’Reilly reportedly fell apart.

The slant of a national news block hasn’t been decided. We know where Sinclair stands, politically, but TVNewser notes, “There are already national challengers from the right, including Newsmax TV and OAN.”

WPIX

And in the nation’s largest market, Tribune’s WPIX-11 is now off the market. It was supposed to go to Cunningham for a mere $15 million. That’s pennies on the dollar, and it would’ve been run by Sinclair. Now, it’ll just go to Sinclair so it’s not on the list.

Tribune Broadcasting Company

But what about those TBDs (to be determined)? They are all owned by Tribune: the Fox affiliates in San Diego, Seattle/Tacoma, Cleveland, Sacramento, Salt Lake City and Denver, and the CW affiliate in Miami/Fort Lauderdale.

And you may have noticed Rupert Murdoch’s Fox conglomerate was not listed as one of the buyers, but that’s sure to change.

The Hollywood Reporter wrote, “Sinclair and Tribune have been negotiating a sale of up to 10 stations to 21st Century Fox, and those talks are still proceeding.”

Jessell of TVNewsCheck was more direct, saying all Sinclair

“has to do now is wrap up its negotiations with Fox. I don’t know what’s delaying that deal, except that neither Fox nor Sinclair is famous for making concessions. Once Sinclair does that, it can finalize its application and the FCC can complete it long-stalled review.”

Those greedy bastards are going to end up screwing everything up for themselves (which I’d love to see happen), and you’ve only read about half of the plans, so far!

Fox network

First, Fox actually used to own the Cleveland, Salt Lake City and Denver stations but sold them to a company called Local TV which sold itself to Tribune. So much for Fox — selling stations and then buying them back later — caring about communities. IMHO, that company can’t make a case for a second chance at ownership.

But now, 21st Century Fox plans to sell off most of its assets like its studio, cable networks and regional sports networks to Disney – keeping just its Fox News Channel, Fox Business Network, its FS1/FS2 cable sports channels, adding to its TV stations, and its network, which will focus on live events, especially NFL Football. The new, smaller company is being referred to as New Fox.NFL Logo

That’s the reason Fox has tried to own stations in cities that have NFC conference football teams since it got the rights to most of their away games in 1994 – and even trade or sell other stations for them – despite the fact a regular season of 16 games could mean the home audience would see its team play about 12 games a year on its local Fox station, unless the team makes the playoffs.

Whether paying a fortune for NFL rights that keep skyrocketing is questionable. It wasn’t questionable in 1994 when Fox arguably overpaid the NFL to get the New World stations to switch away from the Big 3 networks. We’ll see about Fox doing the same on Thursdays, when it doesn’t have popular programming.

Thursday Night Football logo

Fox even got its hands on Cox’s KTVU in San Francisco (with an NFC team, the 49ers, and the AFC Oakland Raiders across the bay will now be moving to Las Vegas in 2020) and give Cox its own stations in Boston (the New England Patriots are AFC) and Memphis (no NFL team).

What has changed is Fox bought the rights to Thursday Night Football, which should split games between NFC and AFC teams. That means Fox has become more interested in AFC team cities, even though there’s no pattern as to which teams play on Thursdays.

Football teams have moved, but the cities Fox wants are Seattle (especially because it’s NFC), and Cleveland, Denver and Miami (because they have AFC teams). San Diego and St. Louis no longer have teams, so Fox isn’t interested in Tribune’s Fox affiliates in those cities.

Seattle, Cleveland and Denver should be easy. The stations are already Fox affiliates so prime-time programming and the amount of news shouldn’t change. And Fox has leverage because it can threaten to take away its affiliation from those stations, lowering their value, if they’re sold to another company.

Remember what Fox did in Charlotte? It dropped a good affiliate, WCCB-Channel 18, because it wanted to own a station where the NFC Carolina Panthers play. Instead, it bought a nothing station, WJZY-Channel 46, and started it from scratch. And it had to do that a second time when it tried to be too different and less traditional the first time! (And, for disclosure: It got a great new news director who is a former colleague.) Remember, Charlotte pretty much sits on the North Carolina-South Carolina line. Old timers are pretty traditional. Was the move worth it for Fox?

Miami is a different story. Fox has a very good affiliate, WSVN-7, owned by Ed Ansin’s Sunbeam Television. (Disclosure: I got my start in journalism there.) It gives Fox great coverage of breaking news in South Florida. Several people at Fox News Channel used to work there. The ratings are great. So what’s the problem?

WSVN

The Miami Dolphins play there, and as an AFC team, they show up on Fox on a few Sundays and may now also be seen on Fox on Thursdays.

But the station that’s available is Tribune’s WSFL-39, a CW affiliate without a news department despite a few morning attempts. WSVN owner Ansin has shown he’ll probably take the station to his grave, with or without any affiliation, so there’s no realistic possibility there.

WSFL

Should Fox dump WSVN and start from scratch with WSFL? Would it be worth the effort?new wsvn 1

Unlike Charlotte, WSVN is a #1 station. And Miami is a very different place. There’s big news regularly and the two main Spanish stations do better than most of the English! People who aren’t bilingual can’t watch all the available stations, which really limits its size, making it actually smaller than the 16th largest market. We’ll have to see who wants WSFL, since a Sinclair-Tribune merger can’t include it due to FCC ownership rules.

One thing I’d say for sure is that WSFL loses its CW affiliation because CBS and Warner Brothers (Time Warner) own the network, and CBS doesn’t only own WFOR-4 (CBS station) and but also WBFS-33 (MyNetworkTV affiliate) and the CW does better.

Staying with this possibility, WSFL could become the new MyNetworkTV affiliate, and MyNetworkTV is owned by Fox.

It’s not so unusual for a network to own stations but not air the network on them.

Let’s take CBS, for example. It owns independents in New York (WLNY-55) and Los Angeles (KCAL-9). In Dallas, WTXA-21 is also independent.

In Miami, WBFS ended up with MyNetworkTV to please Tribune since CBS got the CW in so many other cities when the WB and UPN combined. It’s similar in Boston where WSBK-38 airs MyNetworkTV, but that’s expected to change since Sunbeam’s WLVI-56, which used to be owned by Tribune, airs the CW.

Single CBS-owned stations in Atlanta, Seattle and Tampa air the CW while affiliates owned by other companies air CBS programming.

And in Indianapolis, CBS’ WBXI-47 airs Decades, while the actual CBS affiliation changed from one outside company to another. CBS dumped a strong WISH-8 and went to half of Tribune’s duopoly, independent WTTV-4, over a disagreement with the former Media General.

WPLGA last possibility if Fox is determined to buy a Miami station is ABC affiliate WPLG-10. That station, stable under Post-Newsweek (now Graham Media) for decades, was sold to Berkshire Hathaway as its only broadcast property. We’ve talked about synergies (BH, as an “only child,” has none) and know Warren Buffett wants to turn a profit, so we can imagine Fox dumping WSVN for WPLG, but can’t assume ABC will take its affiliation to WSVN. Remember how CBS didn’t do that in 1989? But that’s highly unlikely.

And somebody will end up with WSFL.

A lot of the information on which stations would be sold was expected since Sinclair hinted in a February filing which stations it planned to sell, to avoid owning more than allowed.

Deadline noted, “For decades, the maximum reach by one single owner has been 39 percent, but the Federal Communications Commission has been re-evaluating the cap.”

old tv sets

More specifically, rather than gutting rules like a good conservative would ordinarily do, the FCC under Pai brought the UHF discount is back. That rule started because it used to matter whether a local TV station was VHF or UHF, due to antennas and how old TV sets were not made for the UHF band. So the FCC decided the amount towards a company’s ownership cap should only be half for those stations, compared to VHF stations. It was ended because today’s technology means it doesn’t matter anymore.

Regarding the UHF discount’s revival, The New York Times wrote, “A few weeks later, Sinclair Broadcasting announced a blockbuster $3.9 billion deal to buy Tribune Media — a deal those new rules made possible.” (Oh, and led to Pai’s investigation. But luckily, Harry Jessell of TVNewsCheck wrote critics of station consolidation say it “now serves only to allow groups to circumvent the intent of Congress, which was to limit groups to 39%” and they’ve “challenged the perpetuation of the UHF discount in court (D.C. Appeals Court), and seem to have made some headway in their oral arguments.”)

It also wrote,

“A New York Times investigation published in August found that Mr. Pai and his staff members had met and corresponded with Sinclair executives several times. One meeting, with Sinclair’s executive chairman, took place days before Mr. Pai, who was appointed by President Trump, took over as F.C.C. chairman.

“Sinclair’s top lobbyist, a former F.C.C. official, also communicated frequently with former agency colleagues and pushed for the relaxation of media ownership rules. And language the lobbyist used about loosening rules has tracked closely to analysis and language used by Mr. Pai in speeches favoring such changes.”

An FCC spokesman representing Mr. Pai countered the allegations of favoritism were “baseless,” and

“For many years, Chairman Pai has called on the F.C.C. to update its media ownership regulations. … The chairman is sticking to his long-held views, and given the strong case for modernizing these rules, it’s not surprising that those who disagree with him would prefer to do whatever they can to distract from the merits of his proposals.”

Last week, Broadcasting & Cable’s John Eggerton wrote FCC chair Ajit Pai suggested at a House Financial Services and General Government Subcommittee hearing “the FCC had not yet had a chance to fully evaluate” the Sinclair-Tribune deal, but, “He would not agree to delay a decision on the Sinclair-Tribune deal until a court ruling on a related issue, the UHF discount.”

However, “Pai said he would factor the potential court decision into the FCC’s decisionmaking.”

Rep. Mike Quigley (D-IL) told Pai the spin-off of WGN-TV Chicago to the owner of a car dealership owned by Sinclair’s executive chair, “stretches the definition of divestiture under the plan to something unrecognizable” and the planned divestitures make a mockery of FCC rules.

Author Eggerton suggested, “One thing the FCC could do would be to condition the deal on the court upholding the UHF discount” and Jessell expects a decision to come in August or September.

Pai denied Rep. Quigley’s request to hold off on a decision on Sinclair until the UHF discount court decision, saying that was a case of clashing hypotheticals — both what the court would do with the discount and what the FCC would do with the proposed merger.

The nerve, since Congress controls the FCC!

Jessell of TVNewsCheck brought up the old saying, “Possession is nine-tenths of the law, and that is no less true when the thing being possessed is a broadcast license.” He also had a lot more details on the court case.

In another article, Jessell analyzed the ownership numbers in this case, and you try to figure out what’s true.

He led by saying,

“Sinclair is telling the FCC that its coverage after spinoffs from its merger with Tribune will be just 58.7%. But that’s for regulatory purposes. (In other words, with the revived UHF discount that only counts channels 14 and up as half the audience of the market.) In the real world, where it matters, Sinclair’s national reach will be 66.3% — a full two-thirds of TV homes.”

But he said Sinclair is telling the FCC

“the coverage of the group will be just 58.7% and, with the UHF discount, below the statutory 39% cap. But those percentages are for regulatory consumption, not the real world.”

So there’s a 7.6-point disparity, the difference between 58.7% and 66.3%. How’d that happen? And don’t forget about the part, “with the UHF discount, below the statutory 39% cap.”

Jessell explained Sinclair

“is claiming 58% because it is not counting stations in three big markets — WGN Chicago, KDAF Dallas, KIAH Houston — that it is spinning off to closely affiliated companies. Without those markets and the discount in effect, Sinclair’s reach will be just 37.39%, safely below the 39% cap.”

Plus, with Dallas and Houston (but not Chicago), “Sinclair has put additional distance between itself and Cunningham” but will “have an option to buy the stations should the FCC ever ease the rules to allow it.”

So this is Jessell’s bottom line:

“So, again, for regulatory purposes, Sinclair’s reach will be 58.7% without the discount and 37.39% with it.

“But I don’t think that is reality. Those are not the numbers that Sinclair will be showing national advertisers, MVPDs, vendors and others with which it does business.

“In the real world, Sinclair will have a lot of control over Chicago and some control over Dallas and Houston, and its effective national reach will be 66.3%. (For the record, its reach with the UHF discount will be 41.1%, two points over the cap, but that will not matter because regulators will not be counting the three markets.)”

Then Jessell questioned Fox’s counting, assuming it’ll buy Miami, Cleveland, Sacramento as well as Seattle, Denver, Salt Lake City and possibly San Diego.

He calculated Fox reaches 36.8% of homes, but just 24.3% with the UHF discount. If it buys up all seven stations, its reach will grow to 45.9% but, well below the cap at just 30.4% with the discount.

But where will Fox find the money to buy the stations it wants? That’s another story!

Last year, Disney made a $52.4 billion offer to buy most of Fox, including its stake in the European pay TV company Sky.

But The Hollywood Reporter said on Wednesday, “Back in 2004, Comcast CEO Brian Roberts bid $54 billion to acquire The Walt Disney Co.” At the time, Comcast hadn’t bought NBCUniversal but Disney did own ABC. It was a 22 percent more than Disney was worth then, but former CEO Michael Eisner said no anyway.

Now, even though NBCUniversal has performed well, some say Roberts wants revenge by offering the same $52.4 billion as Disney for most of 21st Century Fox.

There could also be a bidding war overseas. Sky had agreed to let Fox, a 39 percent shareholder, buy the portion it doesn’t already own – and that Disney agreed to buy from Fox in December. Comcast could ruin those companies’ plans.

sky news logo

CNN reports, “It pledged … to maintain investment in Sky News for 10 years, and ensure the division’s editorial independence.”

Rupert Murdoch wikimedia commons
Rupert Murdoch, Wikimedia Commons

Then, in January, a UK regulator advised the government to block Fox’s bid to buy the remaining 61 percent of Sky because it would give one family – the Murdochs – too much control over media in Britain.

So Murdoch had preferred Disney as the buyer, afraid the Comcast offer came with more regulatory risks. Then, Disney offered to buy Sky News just to help Murdoch buy full control of Sky News’ parent company, the broadcaster Sky. But CNN reported Fox made a new pitch to win approval for Sky by selling Sky News to Disney, and another proposal that would’ve legally separated Sky News from the rest of Sky to ensure its editorial independence.

Then, last month, The Hollywood Reporter reported, “The U.K. Takeover Panel … ruled that Walt Disney must make a mandatory offer to buy full 100 percent control of Sky if and when it completes its planned acquisition of large parts of 21st Century Fox, including Fox’s stake in Sky.”

Then, according to Deadline, “Disney will have 28 days from the completion of its $66 billion acquisition of Fox to make a $15 offer for all the shares of Sky if Fox’s own $15.7 billion takeover of Sky is not complete by then, or if Comcast’s rival offer has not been accepted. It also (decided) this would not be required if another third party has acquired 50 percent of Sky by then.”

But last week Comcast made its $31 billion bid for Sky official and that’s 16 percent higher. Deadline reported that caused Sky directors to withdraw their recommendation of a Fox takeover bid.

This all comes along with many mergers and acquisitions across the industry.

at&t time warner

In fact, a decision on this may not come until a judge determines whether to let AT&T buy Time Warner. The Justice Department has been fighting against it with an antitrust case. Closing arguments just finished and a decision is expected June 12.

According to The Hollywood Reporter, last week Fox said it’s “considering its options” on Sky and is believed to be prepping a sweetened bid. But Comcast is known for (usually) getting what it wants.

But back to Sinclair, which hasn’t been doing itself any favors.

Deadline noted Sinclair “has faced further attention in recent weeks over a push to have local anchors at its stations read company-scripted messages, including a recent prohibition against fake news. The spots … struck many in media as too closely aligned with the dismissive rhetoric of President Donald Trump.”

So much for localism at a company that already owns or operates an astounding 193 TV stations, in 89 cities, covering a huge part of the American population. (You’ve read the different takes on the numbers.)

This is criticism from The New York Times

from the PBS NewsHour

from USA Today

and even Russia Today

and Al Jazeera English.

But Sinclair fought back against CNN’s criticism (and banned comments from YouTube!):

FTVLive’s Scott Jones showed a memo from Portland, OR – I’m sure one of many around the country – ordering employees not to complain.

katu memo

Notice KyAnn’s name. KyAnn Lewis was the news director until Scott reported today she was fired. No details why, especially in the middle of the May ratings period.

Don’t forget, at least for now, local news organizations remain the most trusted source of information in Pew Research Center’s polling on trust in media – even though in January, a Pew Research Center report announced fewer Americans regularly rely on TV news.

Since then, The Poynter Institute said Emory University researchers found

“many TV local news stations are focusing more on national politics and have taken a rightward slant over the past year. And that move is stemming from ownership of the stations, not the demands of a local audience.”

Poynter noted, “The study comes just as many are raising concerns about a coordinated effort by one major owner of TV stations that forces its anchors to record a segment about ‘the troubling trend of irresponsible, one-sided news stories plaguing our country.’” And you know who that is.

The researchers examined 7.5 million transcript segments from 743 local news stations and saw huge differences between other stations, and outlets owned by the nation’s largest local broadcasting chain, Sinclair Broadcast Group.

“The authors found Sinclair stations, on average, carried about a third less local politics coverage and a quarter more national politics … (including) commentaries the stations are forced to run by former Trump official Boris Epshteyn.”

Researchers warned,

“The ‘slant scores,’ based on repetition of ideologically linked phrases, increased by about one standard deviation after acquisition by Sinclair as compared to other stations in the same markets. … And this programming could spur nationalistic and polarizing movements, ‘be expected to reduce viewers’ knowledge of the activities of local officials’ — and hurt accountability, especially “given the decline of local print media.”

So while everything plays out, from fighting the UHF discount in court, to negotiating spinning off stations, to Fox getting money to buy stations (while keeping its Sinclair affiliates), to counting how long the deal has taken (since May, 2017), to counting how long the steps still to be taken will last, the two companies’ bosses have no public complaints or worries.

Sinclair president and CEO Chris Ripley:

“After a very robust divestiture process, with strong interest from many parties, we have achieved healthy multiples on the stations we are divesting. …While we continue to believe that we had a strong and supportable rationale for not having to divest stations, we are happy to announce this significant step forward in our plan to create a leading broadcast platform with local focus and national reach. The combined company will continue to advance industry technology, including the Next Generation Broadcast Platform, and to benefit from significant revenue and expense synergies.”

Tribune CEO Peter Kern to employees:

“There is no reason to assume that this change won’t be for the better. … So try to focus, as you have always done, on the business at hand—delivering outstanding local journalism and great content for our audiences and communities, collaborating with your colleagues, and driving results for our customers.”

Of course!

Click here for a look at many other Sinclair sins, from must-runs, to forced network preemptions, to the script the local anchors where you may live were forced to read, plus John Oliver’s take on the man in charge of Sinclair holding more licenses than anyone else to broadcast over the public airwaves (at least in TV) despite being “charged with committing a perverted sex act in a company-owned Mercedes” in 1996, according to The Baltimore Sun — and also how to have your say and influence the FCC to deny Sinclair the chance to buy Tribune. Plus, get updates from StopSinclair.com.

Other stories of interest:
Big changes when Sinclair bought Seattle station
Veteran reporter fired after report on climate change
April 18 report DOJ days away from clearing the deal
Sinclair ABC station with no news fires commentator for threatening Parkland teen
Sinclair president/CEO email after forcing anchors to read the script
Top journalism schools voice displeasure with Sinclair
Sinclair allows paid ads attacking it, but sandwiched inside its opinion
Sinclair boss Smith’s response to criticism: ‘You can’t be serious!’
Confessions of a former Sinclair news director
Trump: “So funny to watch Fake News Networks … criticize Sinclair Broadcasting for being biased”
Cincy Councilman says he’s boycotting local Sinclair station
Nick Clooney: ‘I have no idea what these folks are doing for a living, but it isn’t news’
Sinclair Chairman Claims Entire Print Media Has ‘No Credibility’
Sinclair’s “Terrorism Alert Desk” segments are designed to gin up xenophobia
Tom DeLay: Why Trump should block the Sinclair merger
Sinclair TV boss donated to Montana congressman who attacked reporter

Enough of big media controlling everything from corporate headquarters! This is what happens when it does. Locals should be in charge of local programming, following the rules of the FCC for using OUR public airwaves!

OK, since you read everything, I’ll give you John Oliver here!

Please, if you like what you read or watch here, subscribe to CohenConnect.com with either your email address or WordPress account, and get a notice whenever I publish.

Tiffany Trump’s trouble, what unions could do to Amazon and the media

us constitution

It’s nice when Americans exercise their First Amendment rights (freedom of religion, speech, the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances) with good intentions, and that should be encouraged.

Last Saturday, many in the country were shocked after March for Our Lives rallies were held all over (more on that in a blog post coming up) and apparently caught Tiffany Trump making her political views known — and they were against her father’s, according to People magazine.

tiffany twitter

No, the daughter of President Trump and Marla Maples didn’t just support the thousands of students taking to the streets around the world, calling for stricter gun control in the U.S. after the massacre at Marjory Stoneman High in Parkland, Fla., in which 15 students and two teachers were killed.

That would be “relatively” easy.

Instead, People wrote, she “appeared to ‘like’ a photo from her verified Instagram account showing a protester holding a sign that read ‘Next Massacre Will Be the GOP in the Midterm Elections’ at the New York March.”

Ouch!

tiffany instagram
Tiffany Trump’s verified Instagram account

Look at the picture below. Unfortunately, I couldn’t find Ms. Trump’s ‘like’ there, and neither could others, but People showed somebody apparently did on Twitter and put a red rectangle around her name.

It appears to be true because Ashley Feinberg, with a verified Twitter account, posted the picture from Julia Moshy’s Instagram account (above).

Anyone can see Ashley Feinberg’s Twitter page. I know because I did and I don’t follow anybody I’m writing about here, on any social media.

tiffany julia

I also figured out Tiffany Trump follows the picture-poster Julia Moshy’s Instagram account (above), so she must’ve really seen the picture on the account. I didn’t know who Julia Moshy is, but she has 18,500 followers!

julia moshy instagram

Turns out, she has been described as “a fashion instagrammer with some legit street cred” and also “the daughter of … someone who didn’t believe in spankings” so the follow doesn’t surprise me.

You’ll also notice near the top Tiffany Trump’s Instagram account is tiffanytrump — one word, all lowercase — and the same after “liked by” in the red rectangle. (You should see who else she follows on Instagram! Click here, and then click where you see the number of accounts she’s following.)

ashley feinberg twitter

As for Ashley Feinberg, her verified Twitter account says she works for The Huffington Post and I can see she tweets a lot. (What looks like the latest tweet is really pinned to the top.) I clicked on her website that’s listed, which is a WordPress blog like this one, and got to the most bland page I’ve ever seen — especially for somebody whose Twitter account says “Graphic design is my passion.”

She described herself on her website: “Ashley is a Senior Reporter at HuffPost. Before that she was at Gizmodo Media Group’s Special Projects Desk, and before Gizmodo Media Group’s Special Projects Desk she was at Gawker.”

feinbergs on instagram

There are several Ashley Feinbergs on Instagram but I got lucky. She was listed first and her web address was a dead giveaway.

feinberg instagram

I wondered how Feinberg saw Moshy’s picture on Instagram that Tiffany Trump liked there. We established the connection between Moshy and Trump, but noticed as I’m writing Feinberg follows Trump but not Moshy.

That may not have been the case earlier in the week. Also, don’t look into Jeb Bush on the list. Feinberg, as a journalist, follows people and groups from both sides of the aisle, and Bush just happened to follow this Trump. (To see who else Feinberg follows on Instagram, click here for her account, and then click where you see the number of accounts she’s following.)

feinberg follows tiffany

So if Instagram is anything like Facebook (and earlier this week we discussed the repercussions of Facebook owning Instagram), then you will see that friends/connections liked something a stranger posted — which may be how Feinberg saw Trump liked Moshy’s picture. (Of course, Feinberg and Moshy may have dropped their direct connection this week.)

Back to the subject at hand, People wrote “Social media users were happy to welcome Tiffany to their side” and gave various examples. Tiffany, 24, is a Georgetown Law School student right there in Washington, DC, but has kept a relatively low profile. You know with law school and all.

Too bad she may have felt the need (or pressure) to remove her ‘like’ from that picture. It goes against her First Amendment rights but People points out from one of its sources,

“She says she is not guaranteed anything (from Donald Trump’s estate when he dies), which is one of the reasons Tiffany and Marla have been so respectful of her dad and tiptoed around so much.”

Money talks.

Speaking of money and TrumpWednesday, I wrote (and published minutes into Thursday), “Sources told Axios Trump has talked about changing Amazon’s tax treatment – using antitrust or competition law – because he’s worried about mom-and-pop businesses being run out of business.”

I also mentioned his theory Amazon abusing the U.S. Postal Service.

Thursday morning, the president tweeted this:

Let’s get a reality check, published Friday morning, from FoxNews.com of all places. The author’s bio on the site says, “Peter Morici served as Chief Economist at the U.S. International Trade Commission from 1993 to 1995. He is an economist and professor at the Smith School of Business, University of Maryland.”

Morici starts with, “President Trump’s claim that Amazon is a tax scofflaw, subsidized by the U.S. Postal Service and an unfair threat to small businesses and malls, is absurdly wrong and dangerous.”

He follows immediately with the details, “Amazon is an online platform that markets products for thousands of manufacturers and smaller merchants. It’s also a retailer in its own right by distributing directly from its own warehouses.”

Then, some background:

“The company has branched into brick and mortar groceries with the acquisition of Whole Foods and is also building out its own package delivery system and entering a host of other businesses.

“Amazon may not pay a lot of income tax but a good number of companies don’t because of how Congress chooses to write the tax code. That was a problem long before Amazon came along and will continue after it is gone.

“Generally, online retailers enjoy an advantage over brick and mortar sores by not collecting sales taxes on shipments to states where they don’t have a physical presence. However, Amazon has warehouses in 45 states and collects sales taxes.”

After that, Morici goes into the Postal Service.

“It’s congressionally granted monopoly on your mail box comes with a requirement that it deliver six days a week to every address. … No matter how remote the location, the Postal Service charges the same 50 cents to deliver a first class letter. This just about guarantee it will lose money on mail service. In recent years, the Postal Service’s salvation has been in providing the last mile to large package delivery companies on less than urgent shipments. This means that Fedex, UPS and others can drop packages at your local post office and the Postal Service sends those out with your letter carrier.”

His bottom line: “Taken alone, neither business would be viable. … Mail delivery can’t be viable without package delivery, and running the last mile for delivery services would not be possible without mail delivery.”

Finally, he goes off on “What makes Amazon so menacing is that it is so efficient” and describes situations including Amazon beating out other companies, how brick-and-mortar stores and local governments reacted by imposing costs, and how Amazon only has a 4 percent market share of retail sales, much less than Walmart, according to the Federal Bureau of Labor Statistics.

And then he takes on Trump. A good, short read after getting the background.

Don’t think Amazon treats its employees right? That thought has been around for years, while dozens of locations are competing to be the home of its second headquarters, and offering pots of gold (or rather huge tax breaks) among other things to win.

Are Amazon employees union members? Sure wouldn’t hurt if they’re not!

Look what West Virginia teachers got by striking. Now, teachers in other red states are noticing.

According to the Associated Press, “A teacher rebellion that started in the hills of West Virginia spread like a prairie fire to Oklahoma this week and now threatens to reach the desert in Arizona.”

Good for them, and America’s children! Bad for blindly cutting taxes.

Univision Communications owns satire site The Onion, and The Wall Street Journal reports editorial and video staffers there and and its sister sites, Clickhole and A/V Club, announced they’re unionizing while Univision “is exploring extensive cost cuts at its digital properties.”

According to Variety, the Writers Guild of America East announced “’an overwhelming majority’ of the staff, comprised of about 100 employees, have signed union cards and called on management to voluntarily recognize the WGA East as the collective bargaining representative.”

Onion Inc. spokesman David Ford told the Chicago Tribune the company started discussions with the guild and they “hope to arrive at an arrangement in short order,” according to the A.P. via U.S. News and World Report.

Good for them! From what I’ve heard, Univision isn’t known as one of the best employers out there. It may be having a huge presence in free-for-all Miami, or the prejudice of serving Hispanic and Latino Americans, or being non-union — at least for the most part.

Let’s look at its history.

On Nov. 16, 2016, Deadline reported, “A week after most of the staff at Univision’s Fusion.net voted to join the Writers Guild of America, the company announced sweeping layoffs.”

Earlier, Univision bought unionized Gawker Media and according to its editorial union on Sept. 12, 2016:

“Univision’s first act on acquiring the company was to delete six true and accurate news stories from our archive, because those stories had been the targets of frivolous or malicious lawsuits. This decision undermines the foundation of the ability of Gawker Media’s employees to do our work. We have seen firsthand the damage that a targeted lawsuit campaign can do to companies and individual journalists, and the removal of these posts can only encourage such attempts in the future.”

Ah, money over journalism! How many times have I written about that on this blog? (Click here for a pretty good-sized list, just from the search box.)

I think we have an answer for Amazon employees who want more money and better working conditions from a growing company that will be making more money.

The same would be true for Sinclair Broadcast Group employees. (Notice how I didn’t mention that company AT ALL in my last post!)

On March 11, I wrote that awful company — the largest owner of television stations in the U.S. — trying to buy Tribune Media through unethical methods was forcing news anchors at its 193 owned, or not owned but operated local TV stations in 89 markets (at least the ones that actually produce news) to read a script that offered no news.

Instructions from Corporate (thanks to Esquire):

Please produce the attached scripts exactly as they are written. This copy has been thoroughly tested and speaks to our Journalistic Responsibility as advocates to seek the truth on behalf of the audience.”

Millions of Americans will soon be watching promotions that begin with one or two anchors introducing themselves and saying,

Script:

“I’m [we are] extremely proud of the quality, balanced journalism that [proper news brand name of local station] produces. But I’m [we are] concerned about the troubling trend of irresponsible, one sided news stories plaguing our country.”

“The sharing of biased and false news has become all too common on social media. More alarming, national media outlets are publishing these same fake stories without checking facts first. Unfortunately, some members of the national media are using their platforms to push their own personal bias and agenda to control ‘exactly what people think’ … This is extremely dangerous to our democracy.”

Then the anchors are supposed to strike a more positive tone and say that their local station pursues the truth.

“We understand Truth is neither politically ‘left or right.’ Our commitment to factual reporting is the foundation of our credibility, now more than ever.”

I tell a lot more in this post, including CNN concluding its description with,

“At the end of the promo, viewers are encouraged to send in feedback ‘if you believe our coverage is unfair’ and ‘Corporate will monitor the comments and send replies to your audience on your behalf,’ so ‘In other words, local stations are cut out of the interactions with viewers. Management will handle it instead.’”

Do you think anyone wanted to look into a camera and read that promotional nonsense during newscasts from the media company with must-run conservatively-bent editorials? I think a union would’ve helped the journalists keep the business people in their place, which is out of the newsroom.

Today, FTV Live’s Scott Jones showed this example of the anchors at KBOI in Boise following corporate directions.

Jones ended by writing, “How these anchors sleep at night after reading this crap, I have no clue.”

jerry springer
Jerry Springer

I wonder when it’s time to jump ship, like WMAQ’s Carol Marin did in Chicago in 1997 when Jerry Springer started giving commentaries on her newscast. The New York Times called her “one of that city’s most popular and respected television news anchors.” Her co-anchor also quit.

logo strip latest

 

The Seattle Post-Intelligencer — which properly discloses “KOMO News and SeattlePI have a content-sharing agreement” — calls that script “the next step in the company’s plan to undermine non-Sinclair outlets.” KOMO-4 is one of Sinclair’s largest stations, after Washington DC, and in a liberal city. Sinclair bought its parent company in 2013.

I’ve had my say in these posts plenty of times — especially here (with a whole lot more reasons and ending with directions on letting the FCC know the danger that Sinclair poses by its size, power and ethics) but also here, here, here, and a few more if you search — so I’ll let SeattlePI continue:

“The claim of balanced reporting is undermined by must-run segments like the one about the ‘Deep State’ that ran during KOMO’s 6pm newscast last week. In the March 21 segment, former Trump adviser Sebastian Gorka parroted a Trump talking point regarding the existence of a ‘Deep State’ attempting to undermine the U.S. government.

“That segment was produced by Sinclair’s Kristine Frazao, who before coming to Sinclair was a reporter and anchor for the Russian-government funded news network RT, described as ‘the Kremlin’s propaganda outlet’ by the Columbia Journalism Review.

“Sinclair also requires stations to run segments from Boris Epshteyn, a Russian-born former Trump adviser who now serves as Sinclair’s chief political analyst. Epshteyn recently produced stories with titles like, ‘Pres. Trump deserves cabinet and staff who support his agenda, yield successes’ and ‘Cable news channels are giving way too much coverage to Stormy Daniels.'”

Also, “Sinclair was fined $13.3 million by the FCC in December for running over 1,700 commercials designed to look like news broadcasts without properly identifying them as paid content on its stations over a six-month period.”

And in January, it had some nerve when it “asked employees to donate to its political action committee meant to sway lawmakers.” FTV Live’s Scott Jones leaked the document that called the Sinclair Political Action Committee, “our fund that supports candidates for Congress who can influence the future of broadcasting” — in their interest, of course!

It’s no wonder New York magazine wrote a piece titled “Local news is turning into Trump TV, even though viewers don’t want it” describing — without repeating what’s above — how “Trump’s handpicked FCC chair, Ajit Pai, spent much of last year dismantling regulatory obstacles to media consolidation — including two rules that stood in the way of Sinclair’s desired merger with Tribune Media.”

Then it presumes “Sinclair has repaid this favor with interest” and asks “Why has Sinclair’s programming become more right-wing, even as it has expanded into more left-leaning media markets?”

It answers by saying, “A new study from Emory University political scientists Gregory J. Martin and Josh McCrain suggests that both of these explanations are wrong: The ideological bent of Sinclair’s programming does turn off local news viewers — but broadcasting such unpopular, ideological content is (probably) a good business decision for the company, anyway.”

Specifically, “The researchers found that Sinclair-acquired stations became both more right-wing in their ideological orientation (as calculated by ‘text-based measures of ideological slant’) and more focused on national politics (as opposed to local politics) than their competitors did over the same period.”

And, “they discovered that the Sinclair-acquired stations did seem to pay a price for these programming changes — but not a terribly large one:

“In ratings terms, the shift towards national politics was costly to these stations: viewers appear to prefer the more local-heavy mix of coverage to the more national-heavy one. Nonetheless, there are very clear economies of scale for a conglomerate owner in covering national as opposed to local politics, thanks to the ability to distribute the same content in multiple markets. Given that the ratings penalty we document is fairly small, it seems likely that these cost efficiencies dominate in Sinclair’s calculus.”

So, New York magazine concludes,

“Sinclair’s commitment to substituting pro-Trump propaganda for local news reporting costs the company viewers — but that commitment does not (necessarily) cost the firm profits.”

sinclair numbers
from http://sbgi.net/

It continues that this is happening while the United States is “suffering through a crisis of local journalism. Regional newspapers are either dead, dying, or hobbling along, shedding resources for local reporting with each step.”

 

And since “Americans increasingly view national events through an algorithmically customized, ideological filter — local TV news has assumed a heightened importance.”

In fact, “‘local news organizations’ remain the most trusted source of information in Pew Research Center’s polling on trust in media.”

Click here for the long list of Sinclair owned, or not owned but operated stations. The number would reportedly grow to 233 stations if the Federal Communications Commission approves its acquisition of Tribune Media. It should not.

sinclair before tribune
Sinclair’s size without Tribune

And at the end of this post, let’s mark the end of Don Imus’ radio career. The shock jock left the airwaves after nearly half of a century on the radio, Thursday.

I wrote about him a month-and-a-half ago when sportscaster Warner Wolf sued, claiming he was fired in 2016 for age discrimination.

The Associated Press had reported Wolf’s suit claimed, “Imus once said it was time to put Wolf ‘out to pasture’ and ‘shoot him with an elephant dart gun.’”

The New York Daily News reported the Imus-Wolf trouble really started a few months before when Wolf moved to Naples, Fla., and contributed to the show from there.

Imus — who himself left the Big Apple a year earlier, in 2015, to live on a Texas ranch — didn’t like it. (At least they have the Gulf of Mexico between them!) The rest of the crew worked in New York.

Now, The Daily News quoted the I-Man,

“I know in my heart there’s been nobody ever better on the radio than me,” the less-than-modest 77-year-old DJ declared shortly before signing off from his studio in Texas. “Nobody ever did this.”

Imus fought back tears while thanking his listeners and saying “You have no idea how much I’m going to miss you.”

The paper also said he “appeared to take subtle parting shots at past rivals including the Rev. Al Sharpton and the self-proclaimed ‘King of All Media’ Howard Stern.

“Imus in the Morning” aired weekdays on 84 stations around the country.