Next test for Trump FCC could be Tribune-Sinclair

Sinclair Broadcast Group, the largest U.S. broadcaster, has reportedly approached major TV broadcast company Tribune Media Co., about a possible consolidation deal.

A potential combination of the two companies, discussions about which were reported Wednesday by Reuters, which cited people familiar with the situation, would require a relaxation of current Federal Communications Commission rules.

Currently, the FCC allows a media company to own multiple TV stations as long as its market share doesn't exceed 39% nationwide. Sinclair, headquartered in Baltimore, Md., owns 173 stations and other properties such as the Tennis Channel and, according to TVNewsCheck.com, reaches more than 38% of the nation. New York-headquartered Tribune Media has 42 stations and WGN, and reaches more than 43% of the nation (the FCC gave it an exemption in 2013 to buy 19 stations from Local TV LLC).

Shares of both media companies rose Wednesday. Sinclair (SBGI) shares were up 4% to $41.50, while Tribune (TRCO) rose 7.27% to $37.03. Both companies declined comment on the report.

Many in the industry expect regulations on media ownership to lessen under the Trump administration and an FCC led by Republican Chairman Ajit Pai.

"We definitely anticipate that more consolidation will happen, in fact we think it's a necessary activity within the industry," Sinclair CEO Christopher Ripley told investors last week on the company's earnings call. "We're quite optimistic about new leadership there and their plans to deregulate the industry.”

Follow USA TODAY reporter Mike Snider on Twitter: @MikeSnider.