Sinclair reportedly offers to merge broadcast TV operations with Tegna

U.S. television station owner Sinclair (NASDAQ:SBGI) has reportedly offered to combine its broadcast TV business with rival operator Tegna (NYSE:TGNA).

Tegna (NYSE:TGNA) is currently in advanced talks on a potential sale to Nexstar Media Group (NXST), a person familiar with the talks told Reuters on Monday.

Any potential merger would be difficult to close because of Sinclair (NASDAQ:SBGI) and Tegna's (TGNA) combined debt load, the report said.

The Wall Street Journal, which first reported the news, said that the deal would value Tegna's shares at around $25 to $30 per share.

Sinclair earlier this month said its board had authorized a strategic review of the company's broadcast business, and it is considering a separation of its Ventures portfolio.

Sinclair (SBGI), which owns, operates, and/or provides services to 178 television stations in 81 markets affiliated with all major broadcast networks, rose about 4% in extended trading.

Tegna (TGNA), meanwhile, is no stranger to takeovers. Standard General and private equity firm Apollo Global (APO) had a deal in 2022 to purchase Tegna for $24 a share, though regulatory delays by the Federal Communications Commission ultimately scuttled the deal in 2023.