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Democrats, Activists, Investors Send Sinclair Message"
YOUNGSTOWN, Ohio -- A blogosphere campaign to bombard advertisers with demands they stop spending money with Sinclair Broadcast Group's 62 television stations. A Democratic National Committee campaign to bombard Sinclair stations with telephone calls from angry viewers. A media watchdog group's campaign to bombard the Federal Communications Commission with complaints.As John Kerry's supporters and media activists unite to protest Sinclair ordering its stations to broadcast "Stolen Honor", a one-sided documentary accusing Kerry of betraying Vietnam veterans, the stock market is also reacting -- and not they way company management may like. The company's stock fell to $7.29 per share at the close of trading Tuesday -- down 9 cents from Monday's closing price of $7.38 per share - and far below the 52-week high of $15.43 per share.Trading volume both days was high. One investor, Barry Lucas of Gabelli & Co., told USA Today, "I don't want my media companies that cover the news to be making news." Gabelli owns about 4% of Sinclair's common stock, the newspaper reported.USA Today speculated that Sinclair, which reported 2003 net profit of $14 million on revenue of $739 million, is banking on George W. Bush's re- election. As this scenario goes, Sinclair needs to be able to own more TV stations in single markets if it is to become highly profitable. The Republican majority on the Federal Communication Commission favors greater consolidation; Democrats do not.Last week Sinclair lowered its third-quarter earnings estimate, leading analysts to lower income forecasts from 5 cents to 3 cents per share.The Democratic National Committee today filed a formal complaint with the Federal Elections Commission, asserting that Sinclair's decision to broadcast the documentary amounts to an illegal in-kind campaign contribution from a corporation.Sinclair says the program, the format for which has not been finalized, qualifies as "news" and therefore is exempt from federal campaign finance laws.Sinclair Orders TV Stations to Broadcast Anti-Kerry FilmMedia Watchdog Group Blasts Sinclair's Abuse of Power"