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Allbritton could be selling too.......


tyrannical bastard

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Oh my gosh, seriously?

 

"II. The Humbert Petition is Based Upon Mischaracteriziations [sic] and Claims That Are Irrelevant to This Proceeding"

 

Well, I would like to offer a reply to the various points of the Sinclair argument...

  • The opposition asserts that my list is "riddled with errors". Unfortunately, no. I actually put research and backing into my petition. And that number, by the way, went up with New Age's sale of stations to Sinclair. It is now 29, not 28, such shell situations.
  • "Mr. Humbert's filing fails to recognize that the FCC's local television ownership rules work on a market-by-market basis, arguing that the separate Baltimore and Washington, DC, DMAs are a single market." Yes, they are different markets, but at the same time the markets have heavy OTA signal overlap. The only shelling situation is in Baltimore. But the distance is such that there will certainly be some deeper-than-usual connections here.
  • I don't contest Sinclair on the standing issue—indeed, I am in a state that does not have any stations in this group. That's not the point. The point is to highlight some critical issues with Sinclair and its relationship with the companies with which it enters into JSA-SSAs.
  • "Further, his petition does not include an affidavit and was not served on Sinclair or its counsel as required by the Commission's Rules." Unfortunately, I'm 18, and I have no clue how to do that. That wasn't my primary goal anyway. Maybe for the next deal you engineer I will see how that goes.
  • "Moreover, Mr. Humbert does not assert that the transaction violates any Commission rule or policies; his complaint appears to be simply that Sinclair is "too big" for his preferences. Because the Sinclair transaction is compliant with local and national ownership caps, Mr. Humbert's generalized complaints lack merit and will not be addressed further. His "Petition" is baseless and should be dismissed without delay." My complaint isn't that Sinclair is too big—it is that Sinclair is following the letter of the law and not the spirit of the law by using a mostly-ignored FCC loophole. There are JSA-SSA situations that are necessary to promote television services, such as those in small markets. There are also JSA-SSA situations that are needless and motivated by a profit drive built upon savings from consolidations. The JSA-SSA situations to be created in this deal are all of the latter variety.

I am incredibly excited to have merited a response from Sinclair. Most of the content portion of my argument is addressed in other rebuttals. Here's one from the Free Press article:

 

"Through the SSAs and JSAs, Sinclair will make available resources and support to Deerfield and HSH that will increase their ability to serve the viewing public. The willingness of Free Press, without a shred of tangible evidence, to label Deerfield and HSH as "shell" companies is irresponsible and offensive, to say the least."

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BTW, third-party "shells" also exist - and yes, even with Sinclair. In a few cases (in both directions), they partnered with Nexstar (with Sinclair both the legal owner and Nexstar operating, and vice versa) and also with Granite in a couple cases after the Barrington purchase. In addition, there are local owners that have "shelled" the stations to other companies.

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BTW, third-party "shells" also exist - and yes, even with Sinclair. In a few cases (in both directions), they partnered with Nexstar (with Sinclair both the legal owner and Nexstar operating, and vice versa) and also with Granite in a couple cases after the Barrington purchase. In addition, there are local owners that have "shelled" the stations to other companies.

 

How dare you insinuate such a thing!

 

You just hurt Sinclair's feelings again.

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  • 2 weeks later...

DCRTV is reporting that Allbritton may be having second thoughts about selling to Sinclair.

 

 

Is Allbritton having second thoughts about selling Channel 7/ WJLA to Baltimore-based Sinclair? Word is leaking to DCRTV from the 27th floor of Allbritton's HQ in Rosslyn that some top executives have some new, serious doubts about the Sinclair deal. If Allbritton's group of nine broadcast TV stations throughout the Mid-Atlantic and South, plus DC's NewsChannel 8, cannot be sold as a group, the deal is off. And that could set the stage for Hearst to buy the group, a well-placed source tells us. ABC has held firm that it doesn't want the Allbritton stations as a group, but might be interested in only WJLA, an ABC affiliate. Interest rates are rising and the Sinclair sale price is said to be $60 million to $90 million over value. We're also told that the Department Of Justice decision to take another look at Sinclair's purchase of Allbritton's TVers, as DCRTV reported earlier today, is a dark cloud since fewer than 10% of transfer filings receive a "second request." More as we hear...

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DCRTV is reporting that Allbritton may be having second thoughts about selling to Sinclair.

 

 

Is Allbritton having second thoughts about selling Channel 7/ WJLA to Baltimore-based Sinclair? Word is leaking to DCRTV from the 27th floor of Allbritton's HQ in Rosslyn that some top executives have some new, serious doubts about the Sinclair deal. If Allbritton's group of nine broadcast TV stations throughout the Mid-Atlantic and South, plus DC's NewsChannel 8, cannot be sold as a group, the deal is off. And that could set the stage for Hearst to buy the group, a well-placed source tells us. ABC has held firm that it doesn't want the Allbritton stations as a group, but might be interested in only WJLA, an ABC affiliate. Interest rates are rising and the Sinclair sale price is said to be $60 million to $90 million over value. We're also told that the Department Of Justice decision to take another look at Sinclair's purchase of Allbritton's TVers, as DCRTV reported earlier today, is a dark cloud since fewer than 10% of transfer filings receive a "second request." More as we hear...

 

 

I'll believe it when I see it.

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If Sinclair do cancel the deal, than ABC/Disney, Hearst, COX, or Nexstar still have a chance.

 

I'd put Hearst as the frontrunner, with one caveat: they would still have to deal with WHTM as it is unlikely they would sell WGAL. ABC/Disney is not interested in the others (just WJLA if anything) so they would only come in with a piecemeal deal, which is likely a last resort. Sinclair might also come back with a different offer as well.

 

Nexstar is likely out as it is beyond their price range, and I don't see Cox is in a buying mood.

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I'm going to assume that the deal will be off of the table because of the conflict of interest?

No.

 

If the deal is called off, it will only be because the Allbritton family is either divided on, or now united against, the deal going forward. Seller's remorse? Possibly. Discord because of S!nclair's political leanings? Maybe. Cold feet of the sale process stalling because of said DOJ docketing, legal challenges AND the shutdown of the FCC? Who knows.

 

That's the only way it would collapse. The deal is, for all intents and purposes, legal and follows existing FCC and FTC guidelines.

 

What IS known is that, political views and his views on S!nclair aside, Dave Hughes (DCRTV) has very good sources, and a 16-year long track record of accuracy in his reporting. Don't discount him at all. He doesn't make it up.

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No.

 

If the deal is called off, it will only be because the Allbritton family is either divided on, or now united against, the deal going forward. Seller's remorse? Possibly. Discord because of S!nclair's political leanings? Maybe. Cold feet of the sale process stalling because of said DOJ docketing, legal challenges AND the shutdown of the FCC? Who knows.

 

That's the only way it would collapse. The deal is, for all intents and purposes, legal and follows existing FCC and FTC guidelines.

 

What IS known is that, political views and his views on S!nclair aside, Dave Hughes (DCRTV) has very good sources, and a 16-year long track record of accuracy in his reporting. Don't discount him at all. He doesn't make it up.

 

The DOJ request might be a crackdown on ownership of multiple high-ranking stations in larger markets. They probably didn't take into account Birmingham since Sinclair only has the #5 and #6 (or lower) stations, and will not have two top-four stations and there will still be three commercial competitors (Raycom, LIN, Media General).

 

Sinclair will have the #2 and #3 (and #5) in the Susquehanna Valley and the #3 and #4 (and #5) in Charleston, leaving only two commercial competitors in each market (Hearst and Tribune in the Susquehanna Valley and Raycom and Media General in Charleston).

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No.

 

If the deal is called off, it will only be because the Allbritton family is either divided on, or now united against, the deal going forward. Seller's remorse? Possibly. Discord because of S!nclair's political leanings? Maybe. Cold feet of the sale process stalling because of said DOJ docketing, legal challenges AND the shutdown of the FCC? Who knows.

 

That's the only way it would collapse. The deal is, for all intents and purposes, legal and follows existing FCC and FTC guidelines.

 

What IS known is that, political views and his views on S!nclair aside, Dave Hughes (DCRTV) has very good sources, and a 16-year long track record of accuracy in his reporting. Don't discount him at all. He doesn't make it up.

I really watched the youtube video when he mentioned lease agreements and shell companies, so I have to.agree.

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Uh oh, Dave Hughes has been on the money almost every single time especially when it comes to DC/Baltimore media. I smell as a situation like the attempt to sell WTVJ to Post-Newsweek all over again except this time it's an entire group...

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Uh oh, Dave Hughes has been on the money almost every single time especially when it comes to DC/Baltimore media. I smell as a situation like the attempt to sell WTVJ to Post-Newsweek all over again except this time it's an entire group...

 

He was also the first to leak information about the Sinclair purchase when he mentioned that Sinclair executives were touring WCIV's facility in Charleston where employees there told him that Sinclair was the buyer.

 

You're right, he's been pretty accurate so far. But I'm still holding my breath.

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The most intriguing factors for me would be:

 

1. If Sinclair loses out, will they still try to acquire NewsChannel8 separately? Or will they still pursue their idea of a national news network which is full of news from Sinclair's affiliates.

 

2. If Hearst acquires Albritton's TV business like DCRTV is reporting, will they similarly pursue making NewsChannel8 a national news network? Would they utilize A&E Networks to leverage carriage of a potential national version of NC8? And if they did, would they also launch the network in partnership with Disney, who also co-owns ESPN and A&E Nets with Hearst?

 

3. For me personally, since I'm a Baltimore native, I wonder how much collaboration WBAL and WJLA would do if they were corporate partners?

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The most intriguing factors for me would be:

 

1. If Sinclair loses out, will they still try to acquire NewsChannel8 separately? Or will they still pursue their idea of a national news network which is full of news from Sinclair's affiliates.

 

2. If Hearst acquires Albritton's TV business like DCRTV is reporting, will they similarly pursue making NewsChannel8 a national news network? Would they utilize A&E Networks to leverage carriage of a potential national version of NC8? And if they did, would they also launch the network in partnership with Disney, who also co-owns ESPN and A&E Nets with Hearst?

 

3. For me personally, since I'm a Baltimore native, I wonder how much collaboration WBAL and WJLA would do if they were corporate partners?

 

I think it's safe to say that if the Sinclair deal does fall through (still holding my breath), their plans for NewsChannel8 will as well. Not sure what Hearst would do with NC8 since they have no experience running a 24/7 news channel on any of their affiliates.

 

I would think that WJLA would do a lot of collaboration with WBAL if they do become sister stations.

 

My questions is what would Hearst do in markets like Harrisburg? They don't have any experience running a duopoly like that in any of their markets and not sure if they have any interest.

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I think the proposed Gannett deal got the FCC thinking....keeping in mind that what they are trying to do could be much more damning in St. Louis and Phoenix simply because the merged stations are towards the top of viewership and market share, whereas Sinclair's properties are usually lower ranked and command less of the market....

 

Simply put, Harrisburg and Charleston may be too much market share for the FCC to allow since you have the 2nd ranked station merging with the 3rd, and the 3rd (or 2nd depending on where WCBD ranks these days) merging with the 4th and 5th.

Birmingham, even though the deal will involve 6 stations (33/40 and WBMA-LP; WTTO/WDBB and WABM), the latter stations rank near the bottom and would have little effect on 33/40's market share.

 

Sinclair has backed out of deals before....

http://www.sbgi.net/news_releases/1999/11_10_1999_2.pdf

They gave up on trying to buy WNEQ-TV (now WNLO) in Buffalo, NY from the Western New York Public Broadcasting Association. This was an interesting case since the main PBS station, WNED, operated off a commercial license (from a UHF NBC owned station that failed in the 1950s) and the second station, WNEQ had a non-commercial license. When LIN bought WNEQ from the WNYPBA, they were able to flip-flop the licenses...

 

http://www.sbgi.net/news_releases/2000/03_15_2000.pdf

They attempted to sell WICS/WICD and KGAN to Sunrise Television, but abandoned plans....Sunrise later merged with LIN.

These three stations were a part of Guy Gannett...and WHAM was sold off to Ackerley....only to be acquired after the Newport Sale.

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Dear Sinclair Broadcast Group:

 

When the Department of Justice expresses concern about concentration of media ownership in these situations, they are validating the concerns I expressed in my petition—which you called "baseless". Well, I think the DOJ would like to object to that.

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Let just say this with Sinclair/Allbritton deal along with Gannett/Belo deal

 

The ownership changes could be of course this is all wishful casting in my eyes-

 

 

KTVK 3/ Phoenix- Post News-Week

KGW 8/Portland- Hearst

KMOV 4/ St. Louis- Hearst

 

WHAS 11/Louisville Journal swap WTVF 5/ Nashville for Hearst

 

WJLA 7/ D.C. (1st) Hearst or (2nd) Cox

WHTM 27/ Harrisburg- Lin TV

WBMA 33/40 Birmingham- Scripps Howard

KATV 7 / Little Rock- Lin TV

KTUL 8/ Tulsa- Lin TV

 

WSET & WCIV the only ones that goes to Sinclair

 

what do you think???

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I think it's safe to say that if the Sinclair deal does fall through (still holding my breath), their plans for NewsChannel8 will as well. Not sure what Hearst would do with NC8 since they have no experience running a 24/7 news channel on any of their affiliates.

 

I would think that WJLA would do a lot of collaboration with WBAL if they do become sister stations.

 

My questions is what would Hearst do in markets like Harrisburg? They don't have any experience running a duopoly like that in any of their markets and not sure if they have any interest.

 

Most likely in Harrisburg there would be a side deal if Sinclair backs away (Sinclair may still get WHTM from Hearst, or someone else like Nexstar may step in), as they are highly unlikely to sell off WGAL. I am hard pressed to see Hearst set a shell up for one station.

 

In Charleston, other companies would still have the 1-2 stations; Raycom would have WCSC (dominant #1) and Media General would have WCBD (distant #2) as WCIV ranks #3. But there would only be two non-Sinclair operations in the market if the deal is approved...assuming Sinclair doesn't go after Raycom or Media General.

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Here's how I see it, playing in line with Dave Hughes' post yesterday. No need IMO for the Speculatron... yet:

 

If the S!nclair/Allbritton deal collapses, the whole group will go to Hearst. All of it, including NC8... which could be expanded into Baltimore cable TVers as an extension of WBAL-TV and WBAL Radio. (Perhaps as a separate entity targeting Baltimore viewers?) Of course the resulting synergy between WBAL-TV, WBAL Radio, ABC7 and Hubbard's WTOP (which would and should retain their long-running news and weather partnerships with ABC7) would automatically make Hearst a media powerhouse.

 

As Hearst has never operated nor would be the type interested in a duopoly, WHTM would be spun off, it being the weaker station.

 

If, however, the discord among Joe Allbritton's heirs cause the company to be spun off Field Enterprises-style, everything gets thrown out the window.

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Here's how I see it, playing in line with Dave Hughes' post yesterday. No need IMO for the Speculatron... yet:

 

If the S!nclair/Allbritton deal collapses, the whole group will go to Hearst. All of it, including NC8... which could be expanded into Baltimore cable TVers as an extension of WBAL-TV and WBAL Radio. (Perhaps as a separate entity targeting Baltimore viewers?) Of course the resulting synergy between WBAL-TV, WBAL Radio, ABC7 and Hubbard's WTOP (which would and should retain their long-running news and weather partnerships with ABC7) would automatically make Hearst a media powerhouse.

 

As Hearst has never operated nor would be the type interested in a duopoly, WHTM would be spun off, it being the weaker station.

 

If, however, the discord among Joe Allbritton's heirs cause the company to be spun off Field Enterprises-style, everything gets thrown out the window.

 

WJLA should be an O&O. As for the other stations, should the Sincrap deal be stopped (which I do not expect to happen, sadly), I could see Gannett grabbing all except KATV, which could go to Hearst.

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As Hearst has never operated nor would be the type interested in a duopoly, WHTM would be spun off, it being the weaker station.

 

They actually operate three--in Sacramento (KCRA/KQCA), Orlando (WESH/WKCF) and Kansas City (KMBC/KCWE).
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They actually operate three--in Sacramento (KCRA/KQCA), Orlando (WESH/WKCF) and Kansas City (KMBC/KCWE).

 

All three of those are either CW or MyTV though. I don't really see them owning two big network affiliates in a market.

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