On October 24, LocusPoint Networks, a subsidiary of the Blackstone Group, the largest hedge firm in the world, filed an injunction to block the sale of KCSM-TV to North Bay Public Media after KCSM owner, the San Mateo College Community District, was ejected from the FCC spectrum auction for failing to file a bid.
Locuspoint had been subsidizing the operations of the television station by paying the school district $900,000 a year since 2013 in exchange for 36.5% of the spectrum sale proceeds, which were estimated to be as much as $114 million dollars in total.
When the District flamed out of the spectrum sale, it did not offer to return LocusPoint’s $3.3 million dollar investment and according to the injunction filed by the company has not indicated that any sale proceeds will be due to Locuspoint, which has numerous agreements in place with the College District, including some governing a station sale should the auction not be successful.
No date has been set for the injunction request to be heard in San Mateo Superior Court.
The injunction request can be seen below.
For more on the KCSM-TV saga: