Sinclair Drops as Judges Question Rule Leading to Tribune Deal

Sinclair Broadcast Group Inc. dropped after judges questioned a rule change that made way for the broadcaster’s proposed acquisition of Tribune Media Co., raising the possibility of turmoil for the $3.9 billion deal. Judges at the U.S. Court of Appeals for the D.C. Circuit questioned why the Federal Communications Commission had reinstated a rule allowing owners of some TV stations to count just part of their audience when tallying holdings against a national limit of 39 percent. The issue is important to Sinclair’s proposed purchase of Tribune, which would leave it covering 72 percent of U.S. households -- or about 45 percent when counting half the audience as allowed under the embattled rule.