Sinclair Broadcast Group used its third-quarter earnings call to advocate for large-scale consolidation in the broadcast television sector. CEO Chris Ripley stated that recent regulatory changes have created a conducive environment for industry restructuring.
The company's revenue for the quarter was reported at $773 million, surpassing expectations, while adjusted EBITDA reached $100 million, exceeding the forecast range by 22%. Ripley focused on what he described as a unique opportunity for the broadcast industry. “The broadcast sector is ripe for consolidation given the various secular and economic challenges we collectively face,” Ripley said during the November 5 call.
Ripley emphasized recent decisions by the Federal Communications Commission and court rulings that have relaxed long-standing ownership limitations, including the removal of restrictions on owning multiple “Big Four” network affiliates in the same market. The company anticipates that the FCC may raise or eliminate the current 39% nationwide ownership cap in the first half of 2026, further reducing barriers to acquisition activity.
Ripley suggested that consolidating the industry into two similarly sized broadcast groups could potentially unlock between $600 million and $900 million in annual synergies through distribution revenue optimization, overhead reduction, and the creation of multi-station markets where regulations allow. “While we present this as one potential industry scenario rather than a prediction, the fundamental point is clear,” Ripley said. “The regulatory environment now enables transformational consolidation that can benefit broadcast group shareholders, creditors, employees, and the communities we serve.”
Sinclair has already taken steps in this direction, closing 11 partner station acquisitions during the quarter, with 12 more awaiting final approval and 10 pending FCC review. These transactions are projected to generate at least $30 million in incremental annualized adjusted EBITDA with minimal upfront capital requirements, reaching full run-rate benefits by the second half of 2026. The company launched a strategic review of its broadcast business in August and is evaluating a potential separation of its ventures division. CFO Narinder Sahai indicated that ventures’ $404 million cash position could support strategic transactions in the broadcast business as regulatory conditions continue to improve.
Looking ahead to 2026, Sinclair expects political advertising revenue to reach at least $333 million during the midterm election year, matching its 2022 record. The company cited competitive Senate races and gubernatorial contests as key drivers. Core advertising revenue is projected to show flat to low single-digit growth, while distribution revenue is expected to remain approximately flat with 2025 levels.
The company also addressed ongoing disputes between programmers and distributors. Ripley criticized the current conflict between Disney and YouTube TV, arguing that local broadcasters have no control over whether their content reaches viewers through virtual multichannel video programming distributors. “This was clearly not the intent of the Communications Act and seems to be, from our perspective, an antitrust issue as well,” Ripley said, noting that the FCC has opened an investigation into network affiliation practices that affect local broadcasters.
Rob Weisbord, chief operating officer and president of local media, emphasized the renewed importance of over-the-air broadcasting for live sports. He noted that NBA games are returning to broadcast television via NBC, and MLB is reportedly planning a similar move. The College Football Championship will return to ABC in 2027. “All points showcased from here forward is that over-the-air is the place that these major sports are coming back to,” Weisbord said.
Starting with its 2026 guidance in February, Sinclair will transition from quarterly to annual guidance, a change Sahai stated better reflects the company's approach to managing its business.