Analyst: It Makes Sense For Many Small TV Stations To Auction Their Airwave Spectrum

This is a big deal in Washington: The FCC desperately wants TV station owners to give up some of the airwave spectrum they use, so it can be redeployed for wireless broadband. The powerful National Association of Broadcasters is pushing back, skeptical that stations will be pressured to sell. But a report this morning from RBC Capital Markets analyst David Bank says it would be smart business for a lot of independently owned stations to go ahead and make a deal with the feds. He found several cases where stations recently were sold for less than the owner could have received by accepting just 25% of what wireless providers are paying for spectrum. That means it’s possible “these stations could see their values rise, based solely on the value of their spectrum.” Major network owners including CBS, News Corp, and Disney also could benefit if they agree to auction off some of the airwaves they use — but the value might not be worth the risk just yet. Bank figures that CBS’ share price would rise 1.6% if it sold half of its spectrum (more…)

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