Sinclair Puts A Value On Its Spectrum

Sinclair Broadcast Group could sell $2 billion worth of spectrum in the Federal Communications Commission auction and it would have only about a 3 percent impact on broadcast cash flow, CFO Chris Ripley said. Those numbers stem from a market-by-market, station-by-station analysis of Sinclair's spectrum based on the most recent Greenhill median estimates for spectrum value. Ripley also noted that the company is "in active discussions with people around the option of channel sharing," though the spectrum sale-BCF analysis does not include the potential impact of sharing deals.

While Ripley's comments pinned a value estimate on the spectrum Sinclair could sell at the auction, they apparently weren't intended to signal a change of course. Sinclair top boss David Smith has said the company can realize more value retaining its spectrum and potentially leasing some of it while deploying new products and services through an updated broadcast standard, ATSC 3.0. "There hasn't been a change internally that we will participate," Ripley said, noting that "The market perception is that we won't participate ... We're here to maximize shareholder value and the auction is a way to do that. "When you do the math and look to maximize shareholder value, there's substantial opportunity for Sinclair," via the spectrum auction.