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Subsequent Events
6 Months Ended
Jun. 30, 2013
Subsequent Events [Abstract]  
Subsequent Events

15. Subsequent Events

Litigation

As previously disclosed in Note 3, in connection with the Merger, a purported class action lawsuit was filed on April 17, 2013 against the Company and its Board of Directors in King County Superior Court in the State of Washington (the “Court”), docketed as Halberstam v. Fisher Communications, Inc., et al., Case No. 13-2-17171-6 SEA (the “Litigation”). An amended complaint was filed on April 23, 2013, and a second amended complaint was filed on June 3, 2013.

On July 25, 2013, the parties to the Litigation entered into a memorandum of understanding (the “MOU”) which sets forth the parties’ agreement in principle for settlement. After the parties enter into a definitive stipulation of settlement, the proposed settlement will be subject to Court approval. If approved by the Court, it is anticipated that the settlement will result in a release of the defendants from all claims that were or could have been brought challenging any aspect of or otherwise relating to the Merger, the Merger Agreement, or the disclosures made in connection therewith, and that the Litigation will be dismissed with prejudice. The Company also anticipates that, in connection with the proposed settlement, counsel for the plaintiff will apply for an award of attorney’s fees and expenses to be paid by the Company, the amount of which will be determined by the Court. The Company has available insurance for such award and it does not expect the size of the award to have a material impact on the Company or its financial results. Pursuant to the terms of the MOU, the Company has agreed to make available additional information to its stockholders. There can be no assurance that the parties will ultimately enter into a stipulation of settlement or that the Court will approve the settlement, even if the parties were to enter into such stipulation. In such event, the proposed settlement as contemplated by the MOU may be terminated. The settlement will not affect, among other things, the consideration to be paid to the stockholders of the Company in connection with the Merger.

The Company and the other defendants have vigorously denied, and continue to vigorously deny, any wrongdoing or liability with respect to the facts and claims asserted, or which could have been asserted, in the Litigation. The Company and the other defendants deny that they have committed any violations of law or breach of fiduciary duty, that they have acted improperly in any way, or that they have any liability or owe any damages of any kind to the plaintiff or to the purported class, and specifically deny that any further supplemental disclosure is required under any applicable rule, statute, regulation or law or that the Company’s Board of Directors failed to maximize stockholder value by entering into the Merger Agreement with Sinclair. The settlement contemplated by the MOU is not, and should not be construed as, an admission of wrongdoing or liability by any defendant. However, among other reasons, to avoid the risk of delaying the Merger, and to provide additional information to the stockholders of the Company at a time and in a manner that would not cause any delay of the Merger, the defendants agreed to the settlement described above. The parties considered it desirable that the Litigation be settled to avoid the substantial burden, expense, risk, inconvenience and distraction of continued litigation and to fully and finally resolve the Litigation.

NPG Option Exercise

On July 12, 2013, the Company received notification that NPG of Idaho, Inc. (“NPG”), a subsidiary of New Press and Gazette Company, exercised their call option to purchase certain assets and liabilities of television stations KIDK-TV and KXPI-LP for approximately $6.0 million subject to final calculation at closing as detailed in the Option Agreement entered into by the Company and NPG in December 7, 2010. The completion of the acquisition is subject to FCC approval and is expected to close in 2013.