21st Century Fox may fight Sinclair for Tribune

21st Century Fox is reportedly in talks with investment firm Blackstone Group, to buy Tribune Media ahead of this week's bidding deadline, according to The New York Times.

Tribune Media, which owns 42 stations nationwide, and the most Fox affiliates of any station conglomerate, was cleared for sale after the FCC voted last week to reduce the limits on broadcast ownerships.

Why it matters: Reports surfaced last week that conservative-leaning Sinclair Broadcasting Group, which owns over 173 stations nationwide, was gunning to snatch up Tribune, which would extend its reach to TV markets in New York, Chicago, and Miami.

Between the lines: With all of the drama occurring around the future of 21st Century Fox, it makes sense that the Murdochs would want to diversify its revenue stream and invest in TV businesses with steady cashflows. The family is currently awaiting regulatory approval for the acquisition of Sky TV in the UK.