Published On: Thu, Jan 14th, 2016

Michael Dell’s $80 million investment no one knew about could be worth as much as $4 billion

The FCC auction is set to take place later this year.

Michael Dell / Getty

Michael Dell is positioned to collect as much as $4 billion by selling the rights to TV station airwaves that a company controlled by his investment firm has been buying quietly in recent years for $80 million.

According to a Wall Street Journal report on Wednesday, Dell’s MSD Capital, his investment arm,  currently controls a group of broadcasters called OTA Broadcasting, that collectively own spectrum licenses that are worth $4.2 billion, based on prices set by the FCC.

Based in New York, MSD Capital is a 80-person firm, established in 1998 to manage the personal investments of Michael Dell.

Some of the stations under Dell’s control include the Spanish-language channel Azteca America and a New York-based Korean TV channel. He also owns 11 local stations in the Pittsburgh area, which collectively cost him roughly $7.3 million to invest in, but is now estimated to be worth $1.47 billion, Business Insider report.

Dell’s investment in TV stations is part of a broader activity called spectrum speculation. The investments were likely made in anticipation of the upcoming FCC auction, in which spectrum licenses will be sold to wireless-broadband carriers like AT&T and Verizon, who need additional airwave frequencies to meet the soaring demand for its services.

Other notable spectrum speculators include Fortress Investment Group and Blackstone Group, The Journal’s report said. The FCC auction is set to take place later this year.

But the report also noted that it’s unlikely Dell will get the full $4.2 billion from the auction. The FCC sets the opening bid at the highest-possible price to get as much participation as possible, and runs the auction in the style of a Dutch auction, in which the price is dropped until the buyer is found.

Dell Inc., the Round Rock-based company, is the No. 3 computer maker in the world, employs 13, 000 workers in the US. Last year, Michael Dell ranked No. 23 on Forbes’ list of the richest Americans with a net worth of $19.1 billion.

READ MORE: Michael Dell

L-R Michael Dell,    Larry Ellison

Oracle’s billionaire founder Larry Ellison has nothing but high and heavy praise for Michael Dell and his pending acquisition of EMC. Though he also says he’s heartbroken that he can’t More…

Michael-Dell-620x310

The chief executive officer of American tech company Dell has described the ‘fun’ he is having as he prepares for what is billed to be the world’s biggest technology merger. Michael Dell spoke candidly More…

Michael Dell

In 2013, Michael Dell and the private equity firm Silver Lake laid out a strategy to take the computing and IT company Dell private in a buyout that valued the company at $25 billion. At the time, the plan was More…

Dell + Benioff sm

Michael Dell Dissing Marc Benioff in Public for Charity,  March 18th, 2015

Fitbit, founded and managed by James Park and Eric Friedman, known for its activity trackers—like the Fitbit Tracker— encourages Fitbit wearers to compete to see who can complete the most steps in a single More…
Internet And Technology Leaders Address Web 2.0 Summit 2011

Some people have interpreted the rise of smartphones and tablets as signaling the demise of personal computers, but the PC market remains strong and continues to grow, according to two industry executives. In an More…

2007 Consumer Electronics Show Showcases Latest Tech Products

A PricewaterhouseCoopers (PwC) annual Global CEO Survey found that most CEOs, particularly in the U.S. are optimistic about growth prospects for their companies. According to CBS News, out of 1, 300 executives in More…

Michael Dell / Getty

–   In the largest technology-related buyout in history, Michael Dell famously took Dell, the company he founded, private for $24.8 billion. Dell admits it wasn’t easy, but is happy with the decision,  More…

2007 Consumer Electronics Show Showcases Latest Tech Products

Leading PC maker Dell was taken private in 2013, and a year on, founder and CEO Michael Dell talks about the advantages of operating a private company. After 25 years as a publicly traded company, Michael Dell More…

 

Read more about: , , ,

Wordpress site Developed by Fixing WordPress Problems