Sinclair Broadcast Group’s stock wasn’t doing well before its owners decided to intervene on Bush’s behalf, but now the company’s value is plummeting. The stock has been dropping all day, as news of advertisers fleeing the company reaches investors. As of right now, Sinclair has lost almost 5% of its value since this morning and about 14% of its value since the controversy over “Stolen Honor” started.
At this point, the problems keep compounding for Sinclair, all of which the company has brought upon itself. But on top of the lost ad revenue, falling stock, challenges to its broadcast license, and destroyed reputation, Sinclair may have ignored its biggest problem of all — fiduciary obligation to stock holders.
I’m no expert in these matters, but as a public company, Sinclair has corporate obligations for which it is liable. The company seems to have put these duties aside because of an ideological political agenda — Sinclair’s leaders would rather influence the presidential election on behalf of their favored candidate than handle their business’ responsibilities appropriately. The result has been a public relations and financial disaster for the company and its stock holders.
In other words, as my friend Fitz mentioned to me, lawsuits against the company’s board of directors may become the next thing to watch out for. Indeed, keep an eye out to see if any of these board members resign before the election.
And speaking of Sinclair, my friend Darrell emailed to note that even the company’s DC bureau chief is fed up with his superiors’ tactics.
The Washington bureau chief for Maryland-based Sinclair Broadcast Group’s news division angrily denounced his employer last night for plans to air an hour-long program that is to include incendiary allegations against Democratic presidential candidate John Kerry for his anti-war activism three decades ago.
“It’s biased political propaganda, with clear intentions to sway this election,” said Jon Leiberman, Sinclair’s lead political reporter for more than a year. “For me, it’s not about right or left — it’s about what’s right or wrong in news coverage this close to an election.”
[…]
Leiberman spoke out yesterday after a mandatory staff meeting attended by Sinclair’s corporate news division at company headquarters in Hunt Valley.
“I have nothing to gain here — and really, I have a lot to lose,” Leiberman said. “At the end of the day, though, all you really have is your credibility.”
Their own bureau chief. That’s amazing. Let’s hope he can find a job with a real broadcast company after Sinclair fires him. Come to think of it, let’s also hope the guy doesn’t own too much Sinclair stock.