Innovate Corp. announced the completion of its sale of a broadcasting unit to CONX Corp. for $75 million in equity funding, with no cash proceeds to Innovate at closing.
The transaction transfers a 75% controlling interest in HC2 Broadcasting Holdings Inc. to CONX, while Innovate retains a 25% ownership stake. The remaining equity interest is subject to post-closing purchase price adjustments and expense or indemnification obligations.
As part of the deal, Innovate extinguished a $105 million loan agreement, including accrued interest, that was entered into in connection with a refinancing transaction completed on June 1, 2026. The loan had been in place prior to the sale of the broadcasting segment.
Under terms of the agreement, a CONX affiliate holds an option to acquire up to 80.1% of HC2’s fully diluted equity over a two-year period starting May 29, 2026. Innovate also retains the right to repurchase up to 15% of its diluted equity from CONX within 18 months post-closing.
HC2 Broadcasting operates more than 260 television stations across over 40 states and distributes more than 50 broadcast networks. The unit is part of Innovate’s portfolio, which includes assets in infrastructure, life sciences, and spectrum, employing approximately 3,700 people across its subsidiaries.
Paul Voigt, interim CEO of Innovate, stated, "We are pleased to successfully complete this transaction and further strengthen Innovate's balance sheet and capital structure."
