Shares of Sinclair Broadcast Group (SBGI - Get Report) surged higher in afternoon trading on Wednesday to close up nearly 7% on heavy trading volume of about 2.4 million shares vs. the monthly average of roughly 1.9 million shares after the media company renewed its affiliation agreements with Fox Broadcasting Company.

The agreement with the Twenty-First Century (FOXA) owned broadcast group restores station affiliation agreements with all five of Sinclair's Fox affiliates in Columbia, SC, El Paso, TX, Reno, NV, and in Albany, GA.

There had been rumblings that Fox would opt to sign a new agreement in a joint venture with Ion Media , but ultimately went with Sinclair. 

"We are pleased we have reached this agreement with FOX, which includes the ability to participate in vMVPD deals," said Barry Faber, Sinclair's Executive VP for Distribution and Network Relations. "We have had a long standing relationship with FOX and this renewal reflects the mutually beneficial network-affiliate model, which marries together the network's prime time and sports programming with our stations local news and syndicated content."

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