Sinclair and Tegna in Merger Talks to Combine Broadcast TV Operations.

Sinclair has reportedly offered to merge its broadcast TV operations with Tegna. The move comes as Tegna is in advanced talks with Nexstar Media Group for a potential sale. The proposed merger would combine Sinclair and Tegna's TV stations, strengthening their presence in the market.

Sinclair Broadcast Group, Inc. (NASDAQ: SBGI), has reportedly offered to merge its broadcast TV business with Tegna Inc. (NYSE: TGNA) [1]. This move comes as Tegna is in advanced talks with Nexstar Media Group (NXST) for a potential acquisition [2]. The proposed merger would combine Sinclair and Tegna's TV stations, potentially strengthening their collective presence in the market.

Sinclair's offer involves separating its Ventures unit, which includes the Tennis Channel and other non-broadcast assets, and combining its broadcast TV operations with Tegna. The deal would value Tegna shares at around $25 to $30 per share [1]. This is significant as Tegna's current share price is $20.18, as of Monday's close.

Tegna, which owns 64 stations in major U.S. markets, has been a target for takeovers. Sinclair operates 178 stations across 78 markets but carries over $4 billion in debt, which could complicate the potential merger [1]. Meanwhile, Nexstar, the country's largest local broadcaster, owns or partners with more than 200 stations in 116 markets.

The potential merger between Sinclair and Tegna would be a significant step in the ongoing consolidation of the U.S. television industry. This consolidation is driven by shifting consumer habits, such as cord-cutting and the rapid expansion of streaming services, and the expectation of looser regulations under the U.S. President Donald Trump administration [2].

However, any potential merger would face regulatory hurdles. The combined debt load of Sinclair and Tegna could pose challenges in closing the deal. Additionally, Nexstar's interest in acquiring Tegna could complicate the situation further.

Sinclair's stock rose about 4% in extended trading following the announcement of its strategic review of the broadcast business [1]. Tegna, on the other hand, has been the subject of repeated takeover interest, with Standard General and Apollo Global having a deal in 2022 to purchase Tegna for $24 a share, though regulatory delays scuttled the deal in 2023 [1].

The proposed merger between Sinclair and Tegna, if successful, could lead to a more consolidated television industry. However, the regulatory hurdles and the ongoing talks with Nexstar make the outcome uncertain. Investors should closely monitor the developments in this ongoing consolidation process.

References:
[1] https://seekingalpha.com/news/4486802-sinclair-reportedly-offers-to-merge-broadcast-tv-operations-with-tegna
[2] https://www.mlive.com/news/grand-rapids/2025/08/report-nexstar-in-talks-to-acquire-tegna-possibly-affecting-west-michigan-tv-stations.html