With Sinclair Broadcast Group's (SBGI +3.7%) $3.9B acquisition deal for Tribune Media (TRCO -0.5%) frozen in place at the regulatory level, Tribune is likely to walk away from the deal, CNN reports.

That's according to sources at both companies. Today is the first day that Tribune can walk according to the original merger agreement between the two.

The FCC inspector general began a probe into whether Chairman Ajit Pai was pushing to change ownership cap rules in order to pave the way for the deal, before an abrupt turnaround from Pai last month over "serious concerns" about "lack of candor" in the deal and its planned divestitures.

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