As the clock strikes Midnight, low-power TV stations that haven’t been built yet and haven’t secured extensions from the FCC will disappear into the ether, with their respective licensees forfeiting the right to create them.
For some, the race against the clock meant engaging in deals before time expires. These fresh transactions involve such companies as HC2 Holdings and Gray Television, and noted brokerage Kalil & Co.
By 11:59 p.m. local time on July 13, all LPTV/translator stations must terminate all
analog television operations regardless of whether their digital facilities are operational.
But, what about stations that have not yet constructed a digital facility?
Too late. They must cease analog television operations as clock strikes Midnight, and remain silent until construction is completed.
If a station went silent prior to completing construction of its digital facility, it had the opportunity to file a request for silent authority. The FCC granted one last extension of time of digital construction permits, of not more than 180 days, but they had to be filed no later than March 15.
That was four months ago, and in that time some licensees have opted to spin their unbuilt facilities to others willing to get them up and running.
In Fargo, N.D., this sees Roseland Broadcasting, headed by Matthew Davidge and Julie Huang, acquiring K40NO-D.
The seller is HC2, and it is earning $7,000 from the sale.
As RBR+TVBR reported in December 2017, Davidge considers himself a “media entrepreneur” and since January 2015 has been co-founder and CEO of Bluestream Health, a telehealth company.
Davidge has also been a digital strategy consultant to MTV Networks, and owned in-hospital TV networks housed under The Wellness Network through the end of 2015.
From 2013-2018, Davidge was the co-owner of Price Hill Television, owner of NBC affiliates WRDE-31 in Salisbury-Ocean City, Md., and WVNC-45 in Watertown, N.Y.; and CBS affiliate KSWL-17 in Lake Charles, La., which debuted on Feb. 15, 2017.
HC2 is also spinning three stations tied to DTV America Corp., an entity it has majority ownership in, and a permit for a HC2 Station Group-licensed facility.
From DTV are W23DV-D in Athens, Ga.; K26PF-D in St. Cloud, Minn.; and W15DC-D in Florence, S.C. From HC2 is K21LB-D in Lincoln City, Ore.
The buyer of these four permits is Innovative Media Technologies, and it is paying just $35,000 for them. The broker: Sterling BCG, representing the buyer, led by Virginia-based Vince Castelli.
The Asset Purchase Agreement is misleading, as the four facilities are listed by DMA, rather than their actual city of license and immediate coverage areas.
Then, there is the Vern Fotheringham-controlled licensee CTB Spectrum Services Two LLC. Through this entity, Fotheringham is spinning four LPTVs-to-be to Gray Television.
CTB has been a seller, and on June 25 sold a collection of unbuilt facilities to Jeff Winemiller‘s Lowcountry 34 Media alongside facilities licensed to Landover 2 LLC, controlled by Laurence Zimmerman.
Zimmerman is teaming up with Fotheringham by also selling unbuilt LPTVs to Gray.
And, the transaction was finalized on Monday (7/12), with the Landover 2 and CTB stations going to Gray in a single asset purchase agreement.
This sees Gray agree to acquire the following permits:
| Call Sign | Community of License | Facility ID | Permittee |
|---|---|---|---|
| W49DU-D | Chula, GA | 186162 | Landover 2 LLC |
| W45EA-D | Columbus, GA | 185775 | CTB Spectrum Services Two |
| W49DR-D | Iowa, LA | 185547 | CTB Spectrum Services Two |
| W50EJ-D | Lake Charles, LA | 185817 | CTB Spectrum Services Two |
| K33MW-D | Sherburn, Minnesota | 186443 | Landover 2 LLC |
| K45LQ-D | Bismark, North Dakota | 186094 | Landover 2 LLC |
| K39LK-D | Dickenson, North Dakota | 186119 | Landover 2 LLC |
| K46ME-D | Williston, North Dakota | 187437 | Landover 2 LLC |
| K38OK-D | Minot, North Dakota | 187460 | Landover 2 LLC |
| K46LO-D | Deadwood, South Dakota | 186050 | Landover 2 LLC |
| K48NF-D | Deadwood, South Dakota | 186051 | Landover 2 LLC |
| K42KU-D | Caputa, South Dakota | 186060 | Landover 2 LLC |
| K40MR-D | Caputa, South Dakota | 186061 | Landover 2 LLC |
| K23MQ-D | Duluth, Minnesota | 185810 | CTB Spectrum Services Two LLC |
| K43OH-D | Racine, Minnesota | 186458 | Landover 2 LLC |
| K45MO-D | Racine, Minnesota | 186459 | Landover 2 LLC |
| K19KE-D | Jolly, Texas | 186356 | Landover 2 LLC |
Gray is paying $712,000 for the LPTV CPs.
Kalil & Co. served as the sellers’ broker of record in this transaction.
The LPTVs will likely be operated alongside existing Gray stations. In Georgia, the Chula facility will be controlled from Albany; Gray owns a station in Columbus.
Iowa, La., is to the east of Lake Charles, where Gray has a property, too. The Sherburn, Minn., LPTV will likely be used to rebroadcast its Mankato station.
Jolly, Tex., is within the Wichita Falls DMA, where Gray has a presence.