Sinclair has proposed separating its Ventures business—which houses nontraditional broadcast media assets including the Tennis Channel and investments—and merging its remaining broadcast TV business with Tegna, in a deal that would value Tegna shares at around $25 to $30 apiece, the people said.

Sinclair Inc., one of the largest owners of television stations in the US, has offered to combine its broadcast TV business with rival operator Tegna Inc., according to a person with knowledge of the matter.

Nexstar had been in talks with smaller rival Tegna to merge its local TV stations amid the continuing consolidation of the U.S. broadcast sector.