In the last 2½ years, Sinclair nearly doubled its portfolio
of TV stations to 108 from 58, becoming the largest broadcaster in terms of
number of stations, according to USAToday.
It will own and operate 149 stations when its pending deals
are completed.
With interest rates low and ad dollars plentiful, Sinclair
is hardly alone in scooping up TV stations. Other companies — including
Gannett, Media General, Nexstar Broadcasting and Tribune Co. — also have bought
or announced deals to acquire more stations this year.
But Sinclair's singularly torrid pace of growth has fueled
debate about enduring questions on concentration of media ownership and fresh
attempts by federal regulators to scale back broadcasters' ambitions.
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| Julian Sinclair Smith |
Founded by David Smith's father, Julian Sinclair Smith, the
company started with one small local station in Baltimore in 1971 and has retained its strong
roots in the area. David Smith and his brothers took control of the company in
the 1990s and began expanding it by acquiring stations. Sinclair started
offering its shares to the public in 1995. But the Smith family firmly controls
the company, with a majority stake in its shares. Four of the eight seats on
the board are occupied by David Smith and his brothers.
Sinclair's acquisitive mode has been good for investors. Its
stock more than doubled — up about 136% — in the last 12 months. Its revenue
for the first six months of the year is up 26% from a year ago to $596.8
million.
Particularly eye-opening — and perhaps most illustrative of
Sinclair's ambition — is a deal announced in late July to buy the seven
stations owned by Allbritton Communications for $985 million. It would give
Smith a foothold in the influential Washington, D.C.-market that would be used
for a broader national expansion. The deal is expected to close by the end of
the year.
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