Reports: Fox News owner joins race to buy Tribune media

Reports: Fox News owner joins race to buy Tribune media
The WGN Radio sign appears on the side of Tribune Tower, Monday, May 1, 2017, in downtown Chicago. TV station operator Tribune Media is at the center of a possible bidding war, following reports that Fox News owner 21st Century Fox and investment firm Blackstone may make a joint takeover bid for the company. Tribune owns or operates 42 local TV stations across the nation, including WPIX in New York, KTLA in Los Angeles and WGN in Chicago. (AP Photo/Kiichiro Sato)

Fox News owner 21st Century Fox and a New York investment firm are in talks to buy TV station operator Tribune Media, according to several reports.

A successful bid would keep Sinclair Broadcast Group Inc., another TV station operator that is also reportedly pursuing the company, from snatching up Tribune. Blackstone, a private equity firm, is said to be putting cash toward creating a joint venture, while 21st Century Fox would contribute some TV stations, according to the reports.

21st Century Fox owns and operates the Fox network, FX cable channel and 28 TV stations. Adding Tribune would give 21st Century Fox control over more local TV stations, most of them in major cities. Tribune owns or operates 42 stations across the nation, including WPIX in New York, KTLA in Los Angeles and WGN in Chicago. It also has stakes in the Food Network and job-search website CareerBuilder. Several of the stations that Tribune owns are affiliated with Fox and air the network's primetime shows such as "Empire" and "The Simpsons."

Tribune, Twenty-First Century Fox Inc. and Blackstone declined to comment Monday. The possible deal was first reported by the Financial Times.

Reports of a potential bid from Sinclair, based in Hunt Valley, Maryland, emerged a month after proposals to dial back regulations that kept a lid on such deals were floated by Ajit Pai, the chairman appointed by Trump to head the Federal Communications Commission.

"All the big media companies want to get bigger," said Jeffrey McCall, a media studies professor at DePauw University.

21st Century Fox wants to enter more markets around the country and drive its revenue higher, McCall said.

Shares of Tribune Media Co. jumped $1.99, or 5.5 percent, to $38.56 in midday trading Monday. Shares of 21st Century Fox, based in New York, slipped 25 cents to $29.61.


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Citation: Reports: Fox News owner joins race to buy Tribune media (2017, May 1) retrieved 19 May 2019 from https://phys.org/news/2017-05-tribune-media-spikes-nascent-war.html
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