Innovate Corp. (NYSE: VATE) has completed the sale of a 75% controlling interest in HC2 Broadcasting Holdings Inc. to Conx Corp., according to a press release issued Sept. 2, 2026.

Innovate retains a 25% ownership interest in HC2, which operates more than 260 broadcast television stations and distributes over 50 broadcast networks across more than 40 states. That stake is subject to potential reduction based on post-closing purchase price adjustments and certain expense and indemnification obligations.

As part of the deal, Conx committed to fund up to $75 million in equity into HC2, a portion of which was funded at closing. A $105 million loan agreement, along with accrued interest, was extinguished under the terms of the transaction. The transaction followed a refinancing of the broadcasting segment announced June 1, 2026.

For an 18-month period following closing, Innovate holds an option to acquire up to an additional 15% ownership interest in HC2 on a fully diluted basis from Conx. Separately, a Conx affiliate holds an option, exercisable for two years from May 29, 2026, to acquire up to 80.1% of HC2's equity on a fully diluted basis. Innovate will not receive cash proceeds from the transaction unless that option is exercised.

"We are pleased to successfully complete this transaction and further strengthen Innovate's balance sheet and capital structure," said Paul Voigt, Interim CEO of Innovate.

Cleary Gottlieb Steen & Hamilton LLP served as legal advisor to Innovate, and Dundon Advisers LLC served as financial advisor.