Sinclair Stock Soars 16%. What’s Giving the TV Station Operator a Boost.

Bjorn Borg appears on the set of Tennis Channel. Sinclair owns the cable network. (Matthew Stockman/Getty Images)

Sinclair stock soared after the TV station operator said late Monday that it had kicked off a strategic review that could lead to sales or acquisitions.

Shares jumped 16% to $14.51 on Tuesday. The S&P 500 rose 0.6%.

The surge came after Sinclair said in a press release that it was weighing up making deals or entering strategic partnerships in a bid “to be a catalyst in the broadcast industry’s evolution.” The company is evaluating spinning or splitting off its Ventures business, which includes the Tennis Channel network, as well as most of the company’s private equity and real estate assets.

Sinclair added that the strategic review doesn’t mean any transaction will take place.

Analysts expect a flurry of dealmaking in the telecom and cable industries this year, with smaller players struggling after years of customer cord-cutting. Regulators under the Trump administration are expected to be more willing to give the green light to potential mergers and acquisitions.

Pay TV and internet operator Charter Communications said in May that it was planning to acquire Cox, and The Wall Street Journal reported on Friday that TV broadcaster Nexstar Media Group was in advanced talks to acquire rival Tegna , citing people familiar with the matter.

Write to George Glover at george.glover@dowjones.com