E.W. Scripps (SSP.US) shares soared over 18% in premarket trading on Monday following reports that Sinclair Inc (SBGI.US), a major U.S. television broadcaster, has acquired an approximately 8% stake in the local TV station operator and is pushing for a full takeover.

Sources familiar with the matter revealed that the two companies have engaged in productive negotiations in recent months, though no agreement has been reached yet. The stake increase by Sinclair is seen as an effort to pressure E.W. Scripps into negotiations, with regulatory filings expected to disclose the holdings later on Monday.

E.W. Scripps operates more than 60 local TV stations across over 40 markets. Its stock has risen nearly 39% year-to-date as investors applaud progress in its sports strategy.

The potential deal aligns with broader industry consolidation trends, particularly in local broadcasting. Last year, expectations for deregulation under the Trump administration—especially in the media sector—fueled predictions of large-scale mergers. Federal Communications Commission (FCC) Chairman Brendan Carr, appointed by Trump, has long advocated for loosening industry restrictions. In August, the FCC announced plans to repeal 98 broadcasting rules deemed "outdated, obsolete, or unnecessary," some of which date back nearly 50 years.

In a separate move this August, media giant Nexstar agreed to acquire rival Tegna for $6.2 billion, pending regulatory approval. If finalized, the deal would unite two major players in U.S. local news and broadcasting. Nexstar currently oversees more than 200 owned and partner stations across 116 markets, while Tegna operates 64 news stations in 51 markets. The transaction is expected to close in the first half of 2026.