Nexstar (NXST, $82.64) to acquire Tribune Media (TRCO, $40.26) for $4.1 billion

American broadcasting giant Nexstar Media Group is set to overtake its arch rival, Sinclair Broadcast Group, (SBGI) which is currently the largest US local TV operator. Nexstar is set to become the largest local U.S. TV station operator by acquiring Tribune Media for ~$4.1 billion.

Although the news of this $4.1 billion deal became public on Sunday, no official announcement or details of the deal have been confirmed by any of the companies.

In all, Tribune, which emerged from bankruptcy in late 2012 and completed a spinoff of its newspaper assets in 2014, gets new life following Sinclair Group’s failed attempt to buy Tribune owing to regulatory hurdles.

Nexstar had outbid P-E firm Apollo Global Management (APO) in an all-cash offer valuing Tribune at ~$46.50/share, to win this deal.

If the deal makes it through the regulatory hurdle, it would surely make Nexstar the largest local TV station operator in the country, as it would add Tribune’s 42 stations to Nexstar’s portfolio of 174 stations.

With this deal, Nexstar would not only gain access to Tribune’s 50 million household reach, but it would also have access to Tribune’s national entertainment cable network WGN America – which again has a reach of more than 77 million households. Additionally, this deal would also give Nexstar access to the Food Network, where Tribune has a stake along with access to a number of websites which Tribune owns.