Emmis sells Texas Monthly for $25M; Terre Haute radio stations sold off
Sales of the Indiana radio stations, and now of its regional magazine, is part of an effort by the company to go private, while avoiding going too deeply into debt
Emmis Communications executive Jeff Smulyan announced in August that he wanted to take the company private, a move that it has attempted before. But to do so, and therefore avoid plunging the company into a debt it cannot handle, it would need to sell off certain assets, including its entire portfolio of city/regional magazines.
The sale will be divided into three transactions, with the assets of WTHI-FM and the intellectual property of WWVR-FM sold off to Midwest Communications, Inc. for $4.3 million; and the assets of WFNF-AM, WFNB-FM and WWVR (other than the IP for that station) for $0.9 million to DLC Media, Inc. A final transaction involves Midwest selling its station, WDKE-FM, to DLC Media because of FCC ownership limits.
Got all that?
Well, the big news, though, may have been broken by Keith Kelly of the NY Post who this afternoon says he has heard that Emmis is selling Texas Monthly to the Hobby family, which once owned the now shuttered Houston Post.
Again, all these sales are due to the effort to take the company private, with management making a proposal to acquire the outstanding publicly held shares of the company for $4.10 per share in cash. The company’s stock is trading today at around $3.95 per share.
Update: Emmis Communications has released a statement this afternoon confirming the sale of the Texas Monthly:
INDIANAPOLIS, Ind. – October 13, 2016 — Emmis Communications Corporation today announced the signing of an agreement to sell the assets of Texas Monthly to an affiliate of Genesis Park, LP, a partnership founded by Paul Hobby, for $25 million, subject to working capital adjustments.