Values for nearly all broadcast TV company stocks fell on Thursday, as the FCC moved forward with a Hearing Designation Order that could all but doom Sinclair Broadcast Group‘s merger with Tribune Media.
For SBGI, shares were down another 4%, to $26.30, as Sinclair shares struggle to avoid a dip in its price to levels not seen since October 2016.
Volume was high, at 5.34 million shares; average volume for Sinclair is 1.49 million shares.
Tribune stock finished with a 4.7% decline, to $32.49. Still, Tribune stock is faring better than it did on Jan. 1, when it was valued at $28.84.
Volume was also exceptionally high for Tribune, with 5.1 million shares traded.
Some have suggested that Tribune Media could wind up in the more favorable position should its merger with Sinclair be terminated, as it could easily find another suitor.
That said, Tribune on Thursday afternoon commented on the Hearing Designation Order issued by the FCC on July 18. “Tribune Media has now had the opportunity to review the FCC’s troubling Hearing Designation Order,” it said. ” 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.”
Several other companies were impacted on Wall Street:
- CBS Corp. dropped 1.3%, to $57.44
- Gray Television closed at $15.15, off 2.3%
- Nexstar shed 1.3% of its value, ending at $75.85
- Viacom‘s Class B shares finished the day at $28, off 2%.
