Sinclair, a major US broadcast station owner, is launching a strategic review of its broadcast business that could result in a merger or spin-off of its ventures unit. The company has already received board approval to explore options and has held discussions with potential merger partners. Sinclair’s shares rose 13% after market trading on the news.
The review comes as deregulation efforts under the Trump administration gain momentum, particularly in the broadcast space. Federal Communications Commission Chairman Brendan Carr has publicly expressed support for eliminating broadcast station ownership rules and caps. This push could lead to a wave of mergers and acquisitions in the industry.
Sinclair operates 178 TV stations affiliated with major broadcasters across 78 markets. The company’s revenue declined 5% to $784 million in the second quarter, with advertising revenue dropping 6%. Broadcast station owners have struggled due to declining pay-TV subscribers, which drive most of their revenue through retransmission fees. Advertising, particularly during local elections, remains a key source of income.
As part of its review, Sinclair is also exploring options for its ventures unit, which includes the Tennis Channel and marketing technology business Compulse. The company has previously reported plans to split its operations into two units: local media and ventures. A spin-off or merger could provide clarity on the future of these businesses.
Industry insiders expect more broadcast station deals to emerge as deregulation efforts gain traction. Other major players, such as Nexstar Media Group, are also reportedly exploring acquisitions. The developments come at a time when Sinclair’s market value has been affected by declining pay-TV subscribers and a significant drop in its stock price.
Source: https://www.cnbc.com/2025/08/11/sinclair-is-exploring-mergers-for-its-broadcast-business.html