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This blockbuster news!

Reuters reports that Gray Television has made an offer to buy the Tegna stations.

Word is that Gray is offering up $8.5 billion dollars to takeover Tegna and all their debt.

This would vastly expand Gray TV and continue to shrink the industry when it comes to ownership.

News of the offer is good for Tegna stockholders who have seen a big bounce before the market even opens. I was talking to a Tegna staffer on the phone two days ago and I told her that my prediction would be that Tegna would be sold before the end of the year.

I would not have predicted Gray as the buyer.

Gray is carrying a large debt load and you have to wonder how they could afford the $8.5 billion dollar price tag for Tegna.

Reuters reports that Gray has a plan to quickly pay down debt should the deal be completed, one of the sources added.

Word is that Standard Media which is run by Soo Kim has been kicking the tires on Tegna and the Tegna suits have been worried about him trying a hostile takeover of the company.

It is a good bet that the brass at Tegna is willing to talk to Gray and see if they can work something out. Tegna would rather make a deal then get taken over.

Gray is known for running stations on the cheap and making cuts. That is the bad news for Tegna employees.

The good news, Gray would likely return Tegna to doing real news and not the Tegnafied news that features Facebook on TV and comics anchoring the newscasts.

So, it is hard to say if this is a good thing or a bad thing.

But, it is early on in the process and no one should hit the panic button just yet.

But you might want to dust it off.