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Tribune withdraws from Sinclair merger, saying it will sue for ‘breach of contract’

Tribune Media said Thursday that it would withdraw from its proposed merger with Sinclair Broadcast Group, while announcing a $1 billion lawsuit against Sinclair over its failed negotiations with federal regulators over the deal.

The breakdown of the deal reflects a reversal of fortunes for Sinclair, which had announced the $3.9 billion tie-up last year as a "transformational" event and the biggest acquisition in its history.

But the merger began to stumble last month after Federal Communications Commission Chairman Ajit Pai raised "serious concerns" about the deal, which originally would have reached roughly 70 percent of U.