Is Fox Threatened By Sinclair's Reach?

Sinclair Broadcast Group may have federal regulators on its side about a possible mega TV-station-group merger. But its business partners -- and competitors -- may give it a harder time. Cue 21st Century Fox. The Fox Broadcasting Network reportedly wants to change its affiliate associations with 26 Sinclair TV stations -- and strike a deal with a smaller TV station group, ION Media Networks.

Why? Insiders say a potential $3.9 billion merger between Sinclair and Tribune Media could be competitive trouble for Fox-owned TV stations -- as well as other Fox affiliates where Sinclair has other network affiliate deals. Is Fox short-sighted? Fox -- like all TV networks -- depends on the steady local TV promotion, which Sinclair provides. Dealing with ION could just be a negotiation ploy with Sinclair, perhaps to extract a far better Fox affiliation agreement. But if that doesn’t work, Fox might do what Sinclair is doing: Buy more TV stations. Perhaps ION stations.