The family behind the media company Scripps is said to want 50 percent in cash, the sources said.
Scripps, home to the HGTV and Food Network lifestyle channels among others, has been talking to Viacom and Discovery, it was reported last week. Any deal has a rolling deadline, the sources told CNBC.
Scripps shares are up 12 percent this year, including a 4.4 percent gain in Tuesday trading. The company has a market value of $10 billion, according to FactSet.
Discovery, with a market value of $15 billion, and Viacom, valued around $14.8 billion, are battling for Scripps to bolster their offerings in a market that has been fragmented by consumers dumping cable for streaming services like Netflix and Hulu.