Chris Ripley, Sinclair president-CEO: “It is unfortunate that Tribune Media Co. terminated our merger agreement. Nonetheless, we strongly believe in the long term outlook of our company and disagree with the market’s current discounted view on our share price."
Sinclair Making $1B Share Repurchase
Sinclair Broadcast Group announced Thursday that its board of directors has authorized the repurchase up to $1 billion of its Class A common shares.
Commenting on the share repurchase, Chris Ripley, president-CEO, said: “It is unfortunate that Tribune Media Company terminated our merger agreement. Nonetheless, we strongly believe in the long term outlook of our company and disagree with the market’s current discounted view on our share price.
“The $1 billion authorization does not use our future free cash flow generation, but simply the excess cash currently on our balance sheet.”
The new $1 billion repurchase authorization is in addition to the company’s existing share repurchase authorization, of which approximately $89 million of repurchase capacity remains. The new share repurchase authorization has no expiration date.
The timing of share repurchases and the number of Class A common shares to be repurchased will depend upon prevailing market conditions and other factors. Repurchases will be made using the company’s existing cash
resources and may be commenced or suspended at any time or from time-to-time at the company’s discretion without prior notice.
Repurchases may be made in the open market, through 10b5-1 programs, through accelerated share repurchase programs, through privately negotiated transactions, through tender offers or through the use of derivative instruments.
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Comments (6)
Knowsbetter says:
August 9, 2018 at 2:57 pm
They’re going to need that money to pay Tribune
will says:
August 9, 2018 at 5:21 pm
Don’t bet on it. In fact, Tribune owes Sinclair $135M as a breakup fee for terminating the merger.
will says:
August 9, 2018 at 9:17 pm
Actually they *would* have owned Sinclair $135M but the timing of the merger termination nullifies the breakup fee. Still, it’s highly speculative to project $1 billion in “lost premium” on Tribune’s part.
hopeyoumakeit says:
August 9, 2018 at 4:52 pm
can’t let that stock tank !
you might get picked off !
will says:
August 9, 2018 at 5:22 pm
Sinclair stock was down a mere 4% on the news. Hardly the harbinger of a hostile takeover.
Megatron81 says:
August 9, 2018 at 11:34 pm
Wrong like always Sinclair stock isn’t going to tank very much it will go up and down like always. Then again you don’t know how the stock market works.