Sinclair, one of the largest broadcast station owners in the U.S., is launching a strategic review of its broadcast business that could result in a merger, CNBC has learned.

The company and its advisors have already held deep discussions with potential merger partners, according to people close to the matter who could not speak publicly due to the sensitive nature of the talks.

At the same time, Sinclair is also looking to spin off or split its Ventures business, which includes pay-TV network the Tennis Channel. The company has already received board approval to explore its options.

While Sinclair has had significant discussions with potential merger partners, there is no assurance a deal or spinoff will happen.

The move comes as the media industry expects deregulation under the Trump administration, particularly in the broadcast space, which could usher in a wave mergers and acquisitions.

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