Why Sinclair Broadcast Group's (SBGI) Shares are Higher Today

NEW YORK (TheStreet) -- Shares of Sinclair Broadcast Group  (SBGI) are higher by 5.81% to 28.60 in early trade this morning following the company's announcement that it has submitted a letter to the Federal Communications Commission in order to meet certain objections the FCC has to shared services agreements in particular and to shared agreements generally which are coupled with a contingent financial interest, such as a guarantee or an option.

If the proposed restructuring is approved, Sinclair will sell certain stations it currently owns to parties other than the parties who were originally contemplated to buy these stations, and following the sale will not provide any services to such stations.

The stations to be sold are WHP, the CBS affiliate in Harrisburg, Pennsylvania, WMMP, the MyNetwork affiliate in Charleston, South Carolina and WABM, the MyNetwork affiliate in Birmingham, Alabama. Sinclair would also discontinue providing services to WTAT, the FOX affiliate in Charleston and would transfer to the buyer of WHP, the rights under an existing LMA to provide services to WLYH, the CW affiliate in Harrisburg.

In each of these three markets, Sinclair is buying the ABC affiliate from Allbritton. Sinclair would retain ownership of WTTO, the CW affiliate in Birmingham.

"The proposed changes to the transaction will have an immaterial impact on Sinclair as a whole and on the Allbritton transaction in particular," said David Smith, Sinclair's President and Chief Executive Officer.

Separately, Sinclair's board of directors approved another $150 million share repurchase program. The stock buyback of Class A common shares would begin after an existing $100 million repurchase program ends. There is $47 million remaining under the existing program.

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