An entity which pocketed hundreds of millions of dollars in the FCC’s Incentive Auction, including $72,817,599 for giving up the spectrum for a “zombie” station in the Big Apple, has just received Commission approval of a deal that sends 7 Class A TV stations in the Pittsburgh market to Philip Falcone‘s HC2 Station Group.
In actions made Dec. 26 and released Dec. 29, the FCC granted the assignment of license to HC2 Station Group for the quintet of stations owned by OTA Broadcasting.
Trading hands are the following properties:
- WKHU-CD 44 Kittanning, PA (FCC Facility Id. 68401)
- WMVH-CD 40 Charleroi, PA (FCC Facility Id. 68394)
- WWKH-CD 47 Uniontown, PA (FCC Facility Id. 68409)
- WWLM-CD 20 Washington, PA (FCC Facility Id. 267)
- WJMB-CD 17 Butler, PA (FCC Facility Id. 68393)
The transaction was first announced on Nov. 14, with the purchase price set at $275,000. A 10% escrow deposit has been made to OTA.
The Class A stations serve the Pittsburgh DMA, where OTA collected a healthy $73.94 million for giving up the spectrum associated with five other Class As.
A second deal also sees HC2 acquiring a property from OTA, and the Commission on Dec. 26 granted the license transfer. It is a separate Asset Purchase Agreement, with HC2 also grabbing from OTA KUGB-CD 28 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.
The seventh station, and third deal, that was just granted by the Commission will see HC2 acquire from OTA Class A W21CK-D in Charlotte. HC2 is paying $500,000 for this property, and 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.
