An analysis from Wells Fargo’s Marci Ryvicker says that Sinclair, Nexstar and Media General have the highest median spectrum values as a percentage of enterprise value at 52%, 49% and 27%, respectively.
The argument that television stations received spectrum licenses “for free” is grossly misleading, says a new study by Navigant Economics Managing Director and Principal Jeffrey Eisenach released today. The study found nearly all TV station owners paid market value for their spectrum licenses through private transactions, and noted other spectrum holders including wireless carriers and satellite television providers DirecTV and Dish Network received spectrum licenses without compensating the government.
A Wells Fargo analysis values the station group’a spectrum at $2.9 billion, or $35.74 per share, 35% above the company’s May 16 closing price. “We think it important for investors to focus on the broadcasters’ most important asset — the about 300 MHz of nationwide spectrum that is owned … collectively by this industry,” the report says.