Y. David Scharf Comments on Nexstar’s Acquisition of Tribune Media
April 8, 2019 – Morrison Cohen Partner Y. David Scharf was quoted in the article “Nexstar's Apolitical Vibe Won't Cure All Merger Ailments”, that appeared on April 5, 2019 in Law360. David comments on the FCC approval process Nexstar Media Group will face in its proposed acquisition of Tribune Media Co., and how Nexstar may have an advantage from understanding why Sinclair Broadcast Group’s bid failed.
“Nexstar has the advantage of the failed Sinclair process, meaning if you understand how and why they failed, they can avoid the pitfalls,” Scharf said.
To Scharf, this work ethic has been apparent in Nexstar's merger documents at the FCC. The broadcaster has already been forthcoming about one market in which it would own too many top-four stations if the acquisition is approved, and it pitched a sale structure to allay those concerns, he said. The company further clarified to the FCC that it would operate other duopoly combinations from Tribune but that no new combinations would be struck.
"They recognized where the FCC was going to look and what the FCC regulations were going to require them to do,” he said.