Sinclair Broadcast Group (NASDAQ:SBGI) is off 7.6%, continuing a two-day post-earnings decline, amid reports that Twenty-First Century Fox (FOX+1.2%, FOXA +0.8%) is in talks with Ion Media Networks to operate local TV stations.

That could set the table for Fox to dump Sinclair as an affiliate partner, Bloomberg notes.

A joint venture would combine more than 60 independent Ion stations with Fox's 28 local stations, and Fox would switch affiliation to Ion from Sinclair for 26 stations coming up for renewal, along with 14 stations owned by Tribune Media (TRCO -3.5%), set to be acquired by Sinclair.

READ FULL ARTICLE HERE