(Reuters) -U.S. broadcaster Sinclair on Monday disclosed an 8.2% stake in smaller rival E.W. Scripps and said it has been in talks for months about a deal that would combine the companies.

Shares of Cincinnati-based Scripps jumped 18.6% after the market opened, valuing the company at about $322.4 million.

Scripps, responding to the stake purchase, said its board remains focused on executing its strategic plan and delivering value to shareholders.

It added that it will evaluate any proposals that enhance value and “take all appropriate steps” to protect the company and its investors from opportunistic actions.

A deal for Scripps would mark the latest consolidation in a U.S. media industry struggling with sinking cable-TV viewership, a soft advertising market and rising competition from

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