U.S. broadcaster Sinclair Broadcast Group said on Monday it would buy Tribune Media Co , one of the largest U.S. television station operators, for about $3.9 billion cash and stock, and assume about $2.7 billion in debt.
The $43.50 per share offer represents a nearly 8% premium to Tribune's Friday close. Shares of Tribune (trbnw), which operates 42 television stations in 33 markets, rose 5.2% to $42.40 in early trading on Monday.
Tribune stockholders will receive $35 in cash and 0.23 shares of Sinclair Class A common stock for each share of Tribune Class A common stock and Class B common stock they own, the companies said.
Reuters reported on Sunday that the companies were close to a deal.
The announcement of the deal comes weeks after the U.S. Federal Communications Commission voted to reverse a 2016 decision that limits broadcasters owning stations serving no more than 39% of U.S. television households.
A combined Tribune and Sinclair could surpass this cap and face some regulatory challenges which could result in divestitures, analysts said.