19 July 2018

Too Corrupt for Ajit Pai. I Did Not Know That It Was Possible.

It appears that in attempting to get approval with Tribune Media, Sinclair Broadcasting flat out lied, and then they got caught:


The Federal Communications Commission has voted unanimously against approving Sinclair Broadcast Group's acquisition of Tribune Media Company, likely dooming the merger.

Technically, the commission adopted a Hearing Designation Order that refers the merger to an administrative law judge. Mergers usually don't survive that legal process. Besides referring the merger to a judge, the FCC's other options included denying the merger outright, approving the merger, or approving it with conditions. The unanimous vote to refer the merger to a judge was finalized on Wednesday evening.

Sinclair's problems stem from its plan to divest some stations in order to stay under station ownership limits. FCC Chairman Ajit Pai proposed the designation order on Monday, saying that Sinclair's proposal to divest certain stations "would allow Sinclair to control those stations in practice, even if not in name, in violation of the law."

………

After Pai's announcement, Sinclair said it would revise its station divestiture plan in an attempt to avoid the referral to a judge. But the FCC was not swayed.

………

UPDATE: The FCC has released the full order. Here's one of the key parts:

Among these applications were three that, rather than transfer broadcast television licenses in Chicago, Dallas, and Houston directly to Sinclair, proposed to transfer these licenses to other entities. The record raises significant questions as to whether those proposed divestitures were in fact "sham" transactions. By way of example, one application proposed to transfer WGN-TV in Chicago to an individual (Steven Fader) with no prior experience in broadcasting who currently serves as CEO of a company in which Sinclair's executive chairman has a controlling interest. Moreover, Sinclair would have owned most of WGN-TV's assets, and pursuant to a number of agreements, would have been responsible for many aspects of the station's operation. Finally, Fader would have purchased WGN-TV at a price that appeared to be significantly below market value, and Sinclair would have had an option to buy back the station in the future. Such facts raise questions about whether Sinclair was the real party in interest under Commission rules and precedents and attempted to skirt the Commission's broadcast ownership rules. Although these three applications were withdrawn today, material questions remain because the real party-in-interest issue in this case includes a potential element of misrepresentation or lack of candor that may suggest granting other, related applications by the same party would not be in the public interest.
I believe that the phrase, "Screwed the pooch," applies here.

This is so bad that not even Pai can stay bought.

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