(Reuters) -U.S. broadcaster Sinclair has offered to buy E.W. Scripps in a cash-and-stock deal that values its smaller rival at $538 million, as cord-cutting and competition from streaming services lead to consolidation in the media industry.

The bid, disclosed in a regulatory filing on Monday, follows months of talks between the companies, as well as a regulatory disclosure last week that Sinclair has an 8.2% stake in Scripps.

The $7-per-share offer for the remaining shares – consisting of $2.72 cash and $4.28 in stock – represents a 70% premium to Scripps’ last close, Reuters calculations show.

Shares of Scripps rose 6.5%, while those of Sinclair fell nearly 2%.

Sinclair has been looking to scale up as the U.S. media industry struggles with declining traditional TV audiences, a weak a

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