NEW YORK ( TheStreet) -- Time Warner Cable (TWC - Get Report) will have to drop Sinclair (SBGI - Get Report) stations in 2011 if the two companies cannot negotiate an agreement before their contract expires at the end of the year.
Sinclair would like to negotiate a renewal of their current deal but does not believe that the two companies will be able to reach an agreement.
"It appears to Sinclair that Time Warner is not interested in reaching agreement on a renewal," Sinclair said in a statement posted on its Web site.
Today, Sinclair announced that Time Warner has refused its offer to submit to binding arbitration before a neutral third party concerning their current retransmission consent disagreement."Time Warner Cable has now demonstrated no real interest in a fair arbitration process," Sinclair executive vice president Barry Faber said. "Time Warner Cable is attempting to tilt the playing field in their favor rather than allowing an impartial third party the opportunity to make a reasoned decision based on all applicable information." Time Warner Cable responded this morning, saying it had agreed to arbitration but that Sinclair had declined the offer. "Unfortunately, this sort of behavior is typical when negotiating with Sinclair," said Time Warner Cable in a statement. "We'd still like to reach an agreement or enter into arbitration with Sinclair, so that we can provide our customers with uninterrupted programming, and we're hoping that Sinclair will begin to act in a more reasonable manner." Without a new contract, Time Warner Cable will lose the right to carry the broadcast of 33 television stations located in 21 markets across the nation. The stations include 10 News Corporation (NWSA - Get Report) Fox affiliates and 5 Disney (DIS - Get Report) ABC affiliates. -- Written by Theresa McCabe in Boston.
>To contact the writer of this article, click here: Theresa McCabe. >To follow the writer on Twitter, go to @TheresaMcCabe. >To submit a news tip, send an email to: firstname.lastname@example.org.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts