Sinclair, a Baltimore-based media company, saw a boost in its stock on Wednesday following the resolution of litigation with former subsidiary Diamond Sports Group and the renewal of Fox affiliations.
Litigation Settlement with Diamond Sports Group
Sinclair revealed on Wednesday morning that it has agreed to pay $495 million to settle litigation with Diamond Sports Group, a former regional sports network unit that had filed a $1.5 billion lawsuit against Sinclair and other defendants. In return for the settlement, DSG has withdrawn its litigation. The settlement payment is expected to cost Sinclair between $250 million and $325 million, which includes tax benefits and other assets.
Restructuring Support Agreement and Partnership with Amazon
Diamond Sports Group also announced a restructuring support agreement alongside the litigation settlement. As part of this agreement, Amazon has made a minority investment in the company and will provide Diamond services on its streaming platform.
Fox Affiliations Renewed
In addition to the litigation settlement, Sinclair confirmed that it has renewed its Fox affiliations in 41 markets, reaching approximately 19 million households. The renewal agreement is for multiple years.
Overall, these developments have had a positive impact on Sinclair's stock price, which increased by 10% to $15.65 in morning trading. However, the company's shares have seen a decline of 14% over the past year.
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