DOJ Rejects Sinclair's Purchase of WTVR

The Department of Justice has rejected Sinclair Broadcast's planned $85 million purchase of WTVR Richmond (VA) from Raycom Media. According to Sinclair, the DOJ acted pursuant to a consent decree that Raycom entered into with the DOJ when it purchased three stations from Lincoln Financial earlier this year. The decree empowered the DOJ to reject unilaterally any deal involving WTVR. Sinclair had hoped to set up a virtual CBS-Fox duopoly in Richmond, the 59th largest TV market. In June 2008, when Sinclair announced that it had agreed to buy WTVR, a CBS affiliate, it also said it would sell its existing Fox affiliate in the market, WRLH, to Carma Broadcasting. But, under an agreement with Carma, Sinclair said it would have provided sales and other non-programming related services to WRLH and operated it in tandem with WTVR. Sinclair said that it believes that the proposed transaction would not have violated the antitrust laws.