OTA Broadcasting was one of the big winners in the FCC’s Incentive Auction, pocketing hundreds of millions of dollars for giving up the spectrum for eight Class A TV stations and two full-power facilities.
But, OTA didn’t get bids on all of its properties in Auction 1000, and it has now agreed to three separate deals involving a total of 7 Class A TV stations—and one hedge fund that’s swooped in to claim them all.
On Monday, RBR+TVBR reported that OTA Broadcasting has agreed to donate a Channel-Sharing Agreement forged with WNET-13 in New York to the PBS member station. The entity pocketed hundreds of millions of dollars in the FCC’s Incentive Auction, including $72,817,599 for giving up the spectrum for that “zombie” station in the Big Apple.
Today (11/14), OTA moved forward with a trio of Form 314 filings with the Commission.
In the first deal, OTA is selling the following stations to HC2 Station Group:
- WKHU-CD Kittanning, PA (FCC Facility Id. 68401)
- WMVH-CD Charleroi, PA (FCC Facility Id. 68394)
- WWKH-CD Uniontown, PA (FCC Facility Id. 68409)
- WWLM-CD Washington, PA (FCC Facility Id. 267)
- WJMB-CD Butler, PA (FCC Facility Id. 68393)
The purchase price is $275,000. A 10% escrow deposit has been made to OTA.
The five Class As serve the Pittsburgh DMA, where OTA collected a healthy $73.94 million for giving up the spectrum associated with five other Class As.
The second deal also sees HC2 acquiring a property from OTA. It is a separate Asset Purchase Agreement, as it reflects a deal struck Monday (11/13) between the two parties.
Along with the aforementioned Class A properties, HC2 is also grabbing from OTA KUGB-CD in Houston.
This single-station deal carries a much bigger price-tag than the five-station Pittsburgh sale. For KUGB, HC2 is paying OTA $1.5 million. A 10% escrow deposit has been made to OTA.
Then, there is a third deal — for a single Class A station — that is being deal to HC2 by OTA. The facility is W21CK-D in Charlotte, and HC2 is paying $500,000 for this property.
A $50,000 escrow deposit has been made to OTA by HC2.
HC2 is led by Chairman/CEO Philip Falcone and describes itself as “a publicly traded diversified holding company which seeks opportunities to acquire and grow businesses that can generate long-term sustainable free cash flow and attractive returns in order to maximize value for all stakeholders.”
HC2 has been actively scooping up Class As and LPTV stations in recent weeks. In mid-October, it paid $9.6 million for 14 LPTV stations from Three Angels Network (3ABN). In September, HC2 acquired Mako Communications‘ 38 low-power TV stations across 22 cities.
