Verizon (VZ -0.3%) is paying $194M in cash to acquire spectrum licenses from Cincinnati Bell (CBB +1%), and is also assuming tower lease obligations. The deal, expected to close in 2H14, has a total value of $210M to CBB.
CBB plans to wind down its wireless ops and "assist its wireless customers in transitioning their service arrangements to Verizon Wireless or other wireless providers."
Verizon, perhaps looking to appease regulators, will assign the rights to CBB's spectrum to P-E firm Grain Management, and then lease a portion of it back.
FierceWireless observes CBB owns a mixture of high-frequency and low-frequency Ohio spectrum. Regulators have been nervous about attempts by Verizon and AT&T to increase their already-massive low-frequency holdings.