Sinclair Broadcast Group, one of the largest broadcast station owners in the U.S., is launching a strategic review of its broadcast business that could lead to a merger. The company is also looking to spin off its ventures unit, which includes the Tennis Channel and Compulse. Sinclair shares surged nearly 13% in after-market trading.

The media industry anticipates deregulation under the Trump administration, potentially leading to a wave of mergers and acquisitions in the broadcast space. Federal Communications Commission Chairman Brendan Carr has expressed support for eliminating broadcast station ownership rules and caps. Sinclair owns 178 TV stations affiliated with major broadcasters across 78 markets.

Sinclair’s second-quarter earnings showed a 5% decline in total revenue to $784 million and a 6% drop in total advertising revenue to $322 million. Broadcast station owners have faced challenges as consumers cut traditional pay-TV bundles. Sinclair’s market capitalization is around $875 million, with an enterprise value exceeding $4.3 billion.

Last year, Sinclair considered selling over 30% of its broadcast TV footprint, or more than 60 stations. CEO Chris Ripley indicated openness to offloading parts of the business. Nexstar Media Group, the largest broadcast TV station owner, is reportedly in talks to acquire Tegna, which has explored selling itself.

Read more at CNBC: Sinclair is exploring merger options for its broadcast business