Analysts Vet FCC Valuations

Sinclair Tops Wells Fargo Estimate From Certain Groups

Wall Street has been running the numbers on the FCC's high-end station reserve price valuations for the spectrum auction.

The FCC last week released a ton of information on the auction, including reserve price calculations, to give broadcasters a better sense of the value of their stations and participation in the auction. 

Wells Fargo Securities notes the different tax consequences for broadcasters depending on whether they give up spectrum, move to a VHF channel, move from a high V to a low, or channel-share, as well as a calculation of which broadcast groups had the greatest enterprise value.

Not surprisingly, Sinclair, the largest group, tops the list, followed by Nexstar and Media General.

Sinclair has said it was not planning to give up spectrum, but there could be a way for groups with duopolies to eat their cake and have it too, giving up one of the stations in a market to the auction, and multicast its programming on the remaining station.

Read more at B&C here.