 Tribune Media Company terminating its $3.9 billion merger agreement with its rival Sinclair broadcast group. The media company also filed a lawsuit against Sinclair for breach of contract. Fox Business correspondent Hilary Vaughn joins us now to explain what is going on here and the huge amount of money involved. Hilary? Adam, as far as breakups go, this has to be one of the more dramatic breakups in corporate history. Tribune Media and Sinclair planned to make history together, but after the FCC and the DOJ had concerns over the deal, it's over. And Tribune Media is slapping Sinclair with a billion dollar lawsuit, saying Sinclair ruined the deal on purpose. Stating in the lawsuit, Sinclair fought, threatened, insulted, and misled regulators in a misguided and ultimately unsuccessful attempt to retain control over stations that it was obligated to sell. All the drama centers around 10 TV stations that Tribune says Sinclair didn't want to let go of even though they knew that was part of the merger deal. Tribune claims that the DOJ told Sinclair if they just ditched the stations as planned, quote, we would be done and the deal would have been greenlit. But Tribune claims that Sinclair told off the DOJ saying, quote, sue me. Now Tribune says they want Sinclair to pay up and help them recover losses. They say their shareholders lost because of Sinclair's, quote, belligerent bad behavior. But Sinclair says it's unfortunate. Tribune called off the merger and they don't agree with what they stated in this lawsuit. Adam. So I got to ask you a question and I realize I might be putting you on the spot. So forgive me. It involves our parent company, which is 21st Century Fox. There was a deal to purchase some of the Tribune stations as part of the Tribune Sinclair deal. Does that throw the purchase of those stations in Jeopardy? Or is that still on the table? Absolutely. It does have that ripple effect on 21st Century Fox. And the only other thing that I'll add here is Sinclair also is noting that all this drama has had a negative effect on their stock price. And they say that's not fair that the market's reacting like this. Adam. Hillary Vaughn, I appreciate you doing this for us and it was good to see you. So joining me now, another panel. And we've got Melissa Armos, Doc Swoosh, and Seth Berinsweig, a business law attorney. Melissa, let me start with you. I brought up those TV stations. One of them is WJW and my old haunts Cleveland. But this kind of deal, I mean, it would have given Sinclair a huge reach of audience in the United States. And there's a cap right now of 39%. So no one's yet going to be able to exceed that. Does this kill future potential mergers for media companies? Well, it might, just to put it in perspective for people, if you've never heard of Sinclair, which many people may not have. They currently are wanting to have more stations than anyone else. So right now they're in a position, they're a powerhouse as it stands. They would have even been more so. They would have had content streaming from three quarters of the American homes if this deal had gone through, which is the problem that the FCC had with it. They said, wait a minute, this is like a monopoly thing. And so they wanted them to sell off some of those stations, but those were the biggies. Those were the big ones and they didn't want to let some of them go. I think one was WGN. So they didn't want to let these ones go. It's the flagship station. If you live in Chicago, WGN, well, it's a super station too nationwide. So let me bring you in, Seth, because, and I'm setting you up with this question. It's a two-parter. But the first part is I thought broadcast was done anyway. I mean, who wants to own and why would you want to own local television? And I think I know the answer and part of it is next-gen TV. But what do you think? Well, you're right. This is a very forward-leaning time in this industry. There's been major digital disruption. And there's a lot of pressure to do deals. And Sinclair was looking to establish additional footprints coast-to-coast. And it was something that was going to be helpful to them. And now they're locked in a billion-dollar legal battle in Cord and Delaware. So it looks like everybody thought that we were looking at this major potential deal where we had these two companies that were hand-in-hand walking towards the altar. But all of a sudden, now we're locked towards a divorce. And you have this lawsuit going on in Delaware. It's alleged on a breach of contract. And Tribune is saying, look, Sinclair did not approach this and exert reasonable efforts to be able to close this deal to get FCC approval. Sinclair is disputing that. But you're absolutely right. The bigger context in which this is happening is a major transactional environment where all of these companies are under pressure to lean forward. So, but let me just, and you first, Seth, and then we'll finish up with you, Melissa. But next-gen TV means I'm going to be able in the future to have my local TV station without Wi-Fi and without paying data. I mean, this essentially becomes a 1950s television without my having to pay a penny and I can watch HD quality TV through next-gen. So for investors looking at a future, perhaps, investment, is local TV a place to go? People say it's dead, but I'm thinking not so fast. What do you think? Well, I would say that you're right. I think that it's less a question of where you're looking in the market, how it ends up rolling out digitally. And you're going to have over-the-top plays in terms of Roku and Apple TV. It's going to be a different world. So I agree with you that it really matters more in terms of how the digital flow is going to be going through the cloud. And this is an environment that's going to be changing every week, if not every day. And there's going to be winners and losers, Melissa. I mean, next-gen TV is still years out, or at least five years out before a lot of stations start doing this. But if you're looking to make an investment and you're long-term, what do you think of television? Because a lot of people say, what we know is old TV is done. Yeah, but they're streaming things on TV. And see, here's the genius, and this was part of the Fox-Sizzling deal. It was so great. People are going to start creating their own content. So not only are they going to put the content out there, they're creating the content, they're streaming the content, they're giving the content, whether it's local or on your phone or on your computer. You're controlling the content, and you're controlling the means of getting the content out there. And you, on all these stations, you've got major control, and that is something that they're going to be able to survive. See, these little guys aren't going to be able to survive. These big, big broadcasting companies, like Sinclair, like Disney, like even Fox, like AT&T with the Comcast thing. Look at how big all these mergers and acquisitions are happening. It's not going to stop. But you're right about the phone thing, but I'm telling you that in the future, they're looking out ahead. That's why they're doing the mergers. I appreciate it, and I can't wait for everybody's fresh content. I can't get enough of cats and shark costumes riding a vacuum. Melissa and Seth, thank you very much. Next, New York City's cap on ride-sharing vehicles has a lot of people wondering whether or not the new cap is actually going to work and is it coming to a city near you? That next.