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Sinclair issued a statement Monday evening saying it was “shocked and disappointed” by Pai’s announcement. "While we understand that certain parties which oppose the transaction object to certain of the buyers based on such buyers’ relationships with Sinclair, a situation we are prepared to address if the FCC agrees with such views, at no time have we misled the FCC in any manner whatsoever with respect to the relationships or the structure of those relationships proposed as part of the Tribune acquisition,” the company said. “Any suggestion to the contrary is unfounded and without factual basis." Tribune Media spokesman Gary Weitman declined to comment Monday. Related: Sinclair is NOT buying the Chicago Tribune. But is it hiring? » While the deal was facilitated by the FCC’s easing of ownership restrictions last year under Pai’s leadership, it still exceeds a 39 percent national audience cap. Sinclair filed several divestiture amendments, but the proposed sidecar arrangements — a strategy the company has used in past acquisitions — may not pass muster with federal regulators. Sinclair and Tribune Media defended the shared services agreements in an FCC filing earlier this month, saying they are consistent with agreements “that have been routinely approved by the FCC over a more than ten-year period.” In his memo Monday, Pai said: “The law requires the FCC to designate the transaction for a hearing in order to get to the bottom of those disputed issues. For these reasons, I have shared with my colleagues a draft order that would designate issues involving certain proposed divestitures for a hearing in front of an administrative law judge.” President Donald Trump appointed Pai as FCC chairman in January 2017. The FCC’s inspector general reportedly launched an investigation late last year into whether Pai relaxed ownership rules specifically to benefit Sinclair’s bid to acquire Tribune Media.
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