Sinclair’s Countersuit Against Tribune Sets Up Winding Road to Ruling

Sinclair Broadcast Group Inc.'s Aug. 29 counterclaim against Tribune Media Co. complicates the tit-for-tat legal battle over their botched merger, and the outcome depends on how the court interprets a vague area of law.

Tribune backed out of the $3.9 billion merger Aug. 9 and filed its suit against Sinclair in Delaware Chancery Court that day. The Chicago-based media conglomerate is asking for $1 billion in damages.

Sinclair’s Aug. 29 counterclaim argued that Tribune breached the merger deal. Sinclair is seeking damages, but its claim doesn’t include a dollar value.

The companies are accusing each other of willfully breaching their ...