Nexstar, the largest TV station owner in the U.S., will reach 80% of the country if the deal gets regulatory approval.

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.

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.