System/Policy
Private equity gobbling up public TV stations: what does the public get?
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Public stations in Connecticut and San Mateo may be at the leading edge of a mass sell-off of public media assets in next year’s FCC spectrum auction. These stations have entered into agreements with LocusPoint Networks, a subsidiary of the private equity firm Blackstone Group, whereby LocusPoint shoulders the stations’ operating costs until the auction and then takes a significant share of the auction revenue after the station has sold its spectrum to wireless bidders. These deals have to be disclosed to the FCC, but their details do not. When the spectrum is auctioned, stations may receive tens of millions of dollars for their spectrum, especially in congested coastal areas. This money is unrestricted and can go back into community-based digital media, or into university gyms, or into a city’s general treasury.