Ergen's Conx acquires HC2 Broadcasting for 5G spectrum play
Conx Corporation, founded by Charlie Ergen, is set to acquire a 75% controlling stake in HC2 Broadcasting, pending FCC approval. This deal positions Ergen to potentially repurpose HC2 Broadcasting's licensed broadcast TV spectrum for 5G wireless connections. The transaction involves a $105 million bridge loan and a commitment of up to $75 million in equity funding for HC2 Broadcasting.
Key Takeaways
- Conx Corporation, founded by Charlie Ergen, will acquire 75% of HC2 Broadcasting.
- The transaction involves a $105 million bridge loan from Conx's subsidiary to HC2 Broadcasting.
- Conx has committed up to $75 million in equity funding for HC2 Broadcasting after the merger closes.
- The deal aims to allow Ergen to repurpose licensed broadcast TV spectrum for 5G wireless connections.
- HC2 Broadcasting previously petitioned the FCC to create a 5G station using low-power TV broadcasting spectrum.
Why It Matters
This acquisition indicates Charlie Ergen's continued strategic interest in combining broadcast infrastructure with wireless applications, specifically leveraging existing spectrum for 5G. It further blurs the lines between traditional broadcasting and telecommunications, eyeing datacasting opportunities. The deal highlights a potential new frontier for spectrum utilization, moving beyond conventional TV broadcasts. Industry observers should watch for FCC approval and how Ergen's team develops the 5G capabilities on this spectrum, as it could set a precedent for other broadcasters with underutilized licenses.
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