CCTV Wireless Heading for Exit?

Last May we reported on CCTV Wireless, a VC-backed platform designed to acquire wireless telecom spectrum. It quietly raised $70 million in Series A funding, and then spent around $64 million of it in a winning bid for a bunch of 1.4 GHz licenses east of the Mississippi (or right on it, if you include St. Louis).

CCTV’s venture capital backers — which include Columbia Capital and Highland Capital Partners — all declined to speak about the company last year, citing FCC regulations. That ppublic posture remains intact when I tried again yesterday, but CCTV itself looks like it’s about to uncergo a major change.

peHUB has learned that CCTV has agreed to sell its 1.4 GHz licenses to hedge fund Harbinger Capital Partners, which in turn will hand them over to publicly-traded mobile satellite services company TerreStar Corp. It’s part of a larger financing arrangement between Harbinger and Terrestar, and details the pending license transfer without referring to CCTV by name: 

Harbinger will assign to TerreStar Corporation its rights to acquire certain 1.4 GHz spectrum licenses in exchange for 1.2 million shares of newly issued, non-voting junior participating preferred stock (which is convertible into 30 million shares of TerreStar Corporation’s Common Stock under certain circumstances).

For context, 30 million shares of TerreStar common stock are currently worth a bit over $140 million. It’s obviously not that simple a conversion due to the non-voting junior issues, nor is TerreStar saying how much Harbinger is paying CCTV. But, if it’s anywhere near $140 million, then the CCTV investors made a big profit in very short time. Kind of seems like something the VCs would want to shout about from the rooftops.