Like all execs and the investment bankers who get rich off mergers and acquisitions, Sinclair, Newstar's and Tegna's principals, execs and investors have huge short term personal financial motivations far more important than a blip in viewership or advertising. They, like all people involved in M&A's, make big bonus', commissions and fees when the deals close.
And it often incurs big fees and costs if the deal falls apart. Tegna probably insisted and got a "Breakup Fee" included in the contract when Nexstar came a courtin'. That is common when a company approaches another with a buyout or merger that the target company believes is not going to be successful because of regulatory hurdles.
Among other things, this is but one of the many behind the scenes factors that play a FAR bigger factor than the general public even knows how these things work. It's not just about short term advertising.
Example: Attempted BCE Privatization
Remember when a group including a bunch of US private equity firms and Ontario Teachers Pension Fund tried to take Bell Canada Enterprises private for $30 billion?
Bell initially said no thanks. They knew the deal wouldn't be approved by the Competition Bureau among other things. The private equity firms said not to worry, that they could make it work and were willing to take their chances. Bell said, 'fine... knock your socks off... but if this turns out to be a waste of our time, you will have to pay a $1.2 billion dollar breakup fee'.
Sure enough, the deal fell through. Bell asked for their breakup fee and the private equity weasels tried to get out of it. The matter was eventually settled out of court.
"A legal fight looms between BCE Inc. and its would-be purchasers over the issue of a $1.2 billion breakup fee after the $52-billion proposed privatization of Canada's largest telecommunications company was officially declared dead on Thursday."
