Reuters is reporting that Gray Television has made an offer to buy Tegna for close to $8.5 billion.
If the deal were to go through, Gray would increase its footprint significantly.
Tegna, which is Gannett’s broadcast and digital arm, runs 62 stations in 51 markets. Gray operates in 93 markets. Gray has a bigger footprint in smaller television markets than Gray.
Last year, Nexstar Media Group acquired Tribune for $7.2 billion including debt while Sinclair purchased 21 regional sports networks.
Reuters is also reporting that Standard General, a hedge fund that owns roughly 9.7% of Tegna, has been pushing the company to sell itself. Investment firms HG Vora Capital Management and Donerail Group have also been pushing for changes at Tegna.