Two major national media deals under consideration would each have a significant impact on the Denver TV market.
As previously reported, Sinclair Broadcast Group is hoping to buy Tribune Media Co. in a $3.9 billion deal that would create a national broadcasting monolith. Denver has two Tribune-owned stations: KDVR and KWGN.
At the same time, Rupert Murdoch’s 21st Century Fox is close to buying as many as 10 stations from Sinclair, probably including Denver’s KDVR, which might be spun off by Sinclair to win regulatory approval. Analysts note that Denver fits with Fox’s renewed interest in acquiring more local affiliates in midsized markets, especially those in cities with NFL teams.
Fox’s bid comes as Sinclair prepares to divest a number of TV stations to win the Federal Communications Commission’s approval of its mega-deal to buy Chicago-based Tribune Media.
And while the FCC is reviewing Sinclair’s plan to buy Tribune to see whether it is in the public interest, the Justice Department is reviewing the proposed transaction to see whether it complies with antitrust law.
Staffers at KDVR and KWGN have been anxiously awaiting word of an impending sale to the politically conservative Sinclair. That they could instead be brought into Rupert Murdoch’s Fox fold may relieve some anxiety, as Sinclair has a reputation for weaving commentary into local newscasts.
In a recent filing, Sinclair said it may seek FCC permission to leave intact station combinations in the 10 overlap localities, including Denver.
If the Sinclair deal receives regulatory approval, it would create a coast-to-coast string of stations exceeding current ownership limits. The deal for Tribune’s 42 stations would boost Sinclair, which already has almost 200 stations, into a broadcast giant serving more than 70 percent of U.S. households, including major markets such as New York and Chicago.
Any sell-off of stations to secure antitrust clearance from the Justice Department would probably come in the 10 markets where both Sinclair and Tribune stations are affiliated with major networks, according to Bloomberg analysts. Denver fits that bill. KDVR (Fox31) is a Fox affiliate and KWGN (Channel 2) is an affiliate of The CW.
It could all come down to the Broncos and the Seahawks: Fox has long been interested in picking up midsized markets with popular football teams. Denver and Seattle are mentioned most often by analysts assessing the potential Fox deal.
There are many moving parts to the deals, and local station personnel declined to speculate.
Joanne Ostrow: joniostrow@gmail.com
Bloomberg News contributed to this report.
