Sinclair stock rises after Kerry film droppped | Reuters.com
- Shares of Sinclair Broadcast Group Inc. (SBGI.O: Quote, Profile, Research) jumped nearly 9 percent on Wednesday, a day after the TV station owner backed away from plans to air a film critical of Sen. John Kerry that Democrats have said is a blatant political statement masquerading as news.
Sinclair said after Tuesday's market close that it would only run portions of the program "Stolen Honor: Wounds That Never Heal, about the Democratic presidential candidate's anti-war activities 30 years ago as part of an hour-long special on Friday.
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Sinclair stock rises after Kerry film droppped
Wed Oct 20, 2004 11:10 AM ET
NEW YORK, Oct 20 (Reuters) - Shares of Sinclair Broadcast Group Inc. (SBGI.O: Quote, Profile, Research) jumped nearly 9 percent on Wednesday, a day after the TV station owner backed away from plans to air a film critical of Sen. John Kerry that Democrats have said is a blatant political statement masquerading as news.
Sinclair said after Tuesday's market close that it would only run portions of the program "Stolen Honor: Wounds That Never Heal, about the Democratic presidential candidate's anti-war activities 30 years ago as part of an hour-long special on Friday.
Sinclair shares had dropped sharply since the controversy began earlier this month amid concern over a possible advertising boycott and potential legal and regulatory issues stemming from the controversy. Democrats have demanded equal air time from Sinclair, whose top executives have been major contributors to Republicans in recent years.
Shares rose 55 cents to $6.81 on Wednesday morning on the Nasdaq, but the stock still is down 54 percent year to date in part on Sinclair's struggles with an unsteady advertising market. It had fallen by more than 16 percent after news came out that it planned to air the controversial film.
"What the market perceives is that Sinclair has backed down -- and now all the problems will go away," said Blair Levin, an analyst at Legg Mason. Levin said it was unclear, though, whether the company's critics would be appeased by the company's move and the potential impact of the controversy on its advertising.
In a statement responding to Sinclair's announcement, Kerry's campaign said the company "has a history of putting their own partisan politics ahead of honest journalism."
"We do hope they will reconsider their decision to help their friend, George W. Bush, by imposing false, negative attacks upon their viewers," Kerry campaign spokesman Chad Clanton said.
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