Sinclair offers to merge broadcast TV business with rival Tegna, source says

(Reuters) -U.S. television station owner Sinclair has made an offer to merge its broadcast TV business with smaller rival Tegna, which is in advanced talks on a potential sale to Nexstar Media Group, a person familiar with the talks told Reuters on Monday.

Any potential merger would be difficult to close because of Sinclair and Tegna's combined debt load, the person said, asking not to be identified as the discussions are private.

At the end of the second quarter, Sinclair had roughly $4.11 billion in debt while Tegna had about $2.33 billion.

The Wall Street Journal, which first reported the news, said that the deal would value Tegna's shares at around $25 to $30 apiece, citing people familiar with the matter.

Reuters could not immediately verify the details of the deal.

Earlier this month, Sinclair 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 owns, operates and provides services to 178 television stations in 81 markets.

Tegna has been subject to takeover interest in the past. In 2022, it agreed to be taken private by Standard General in a deal valued at $8.6 billion, including debt, but later terminated the merger agreement following regulatory scrutiny. Tegna controls 64 stations and runs the True Crime Network and Quest.

Sinclair and Tegna declined to comment.

(Reporting by Devika Nair in Bengaluru and Milana Vinn; Editing by Alan Barona)