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Sinclair Broadcasting Group CEO Chris Ripley expects the Federal Communications Commission to raise or eliminate its 39% nationwide broadcast ownership cap in the first half of 2026. In September, the FCC advanced its review of broadcast ownership rules, seeking public comment on retaining, modifying or eliminating the local radio, television and dual network rules. That review comes after the Eighth Circuit Court vacated the FCC’s decision to retain the “top four” rule, which prohibited a single entity from owning or controlling two of the top four television stations in a local market. The FCC also refreshed the record and asked for public comment on whether to retain, modify or eliminate the National Television Multiple Ownership rule, which limits entities from owning or controlling broadcast television stations that, in the aggregate, reach more than 39% of TV households in the United States. “These regulatory changes came at a critical time. The broadcast sector is facing secular challenges within linear TV, while having a unique opportunity for significant consolidation,” Ripley told analysts during the company’s third quarter earnings call on Wednesday. “We believe the industry is at an inflection point where scale and operational efficiency will increasingly separate high performing companies from the rest.” In August, the company launched a strategic review of its broadcast business in August, which is looking at opportunities including acquisitions, strategic partnerships and business combinations with potential partners in the broadcast and the broader media and technology ecosystem. It is also evaluating the benefits of separating its ventures business through a “spin-off, split-off, or other transaction.” During the call, Sinclair executives estimated that consolidating two similarly sized broadcast groups could unlock $600 million to $900 million in annual synergies through mergers and “portfolio optimizations.” Sinclair owns, operates and/or provides services to 178 television stations in 81 markets affiliated with all the major broadcast networks. It also owns the Tennis Channel and multicast networks Charge, Comet, Roar and the Nest and recently sold its local news streaming aggregator NewsOn to Zeam for an undisclosed amount. Sinclair’s total revenue fell 16% year over year to $773 million during its third quarter of 2025, with media revenue dropping 16% to $765 million, ad revenue falling 26% to $321 million and distribution revenue falling 3% to $422 million. It also swung to a net loss of $1 million, compared to a profit of $94 million in the year ago period. Sinclair Ventures, LLC (Ventures) also made approximately $6 million in minority investments, as required by outstanding funding commitments and received distributions of approximately $2 million. As of Nov. 1, Sinclair has closed 11 partner station acquisitions, 1 station swap, 4-market sale of stations, acquired non-licensed assets in 2 markets and acquired the NBC affiliation in 1 market. It also has 10 option exercises pending FCC approval and two that have been approved and are awaiting final closing. Additionally, Sinclair expects to file several additional partner station acquisitions with the FCC pending the reopening of the federal government. Sinclair CEO Chris Ripley noted that the moves would represent at least $30 million in incremental annualized EBITDA once finalized. “Looking ahead, we anticipate record mid-term political revenue in the upcoming cycle, and are encouraged by recent regulatory developments that should lead to much-needed industry consolidation and significant synergies for investors,” Ripley added. More to come…
