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Emmis to Sell Controlling Interest in Austin Radio Cluster
Tuesday 11 June 2019

11 June 2019 - US-based radio station operator Emmis Communications Corp. (NASDAQ: EMMS) has inked an agreement to sell its 50.1% controlling interest in a partnership that owns and operates six Austin radio stations and two FM translators to its partner, Sinclair Telecable, Inc., for USD 39.3m, subject to customary prorations and adjustments, the company said.
Emmis and Sinclair have been partners since Emmis purchased its controlling interest in July 2003.
Sinclair Telecable is not in any way affiliated with Sinclair Broadcast Group, licensee of KEYE-TV in Austin.
Sinclair Telecable is headed by Bob and David Sinclair, who have owned radio stations in Austin since 1995. The company also owns and operates 7 FM, 2 AM, and 2 FM translators in Norfolk, Virginia and in the Sonoma County California wine country.
The Austin radio cluster includes eight station brands: KLBJ-AM, KLBJ-FM, Bob FM, La Zeta, Star 93.3, 101X, Austin City Limits Radio, and Latino 102.7. The Austin cluster will be rebranded as Waterloo Media.
Emmis Communications Corp. (NASDAQ: EMMS) owns 11 FM and 3 AM radio stations in New York, Austin (Emmis has a 50.1% controlling interest in Emmis' six radio stations located there) and Indianapolis.
Emmis owns a controlling interest in Digonex, which provides dynamic pricing solutions across multiple industries, as well as Indianapolis Monthly magazine.
Moelis and Company LLC represented Emmis as exclusive financial advisor.
Details
Date Published: 11/06/2019
Target: Partnership that owns and operates six,  Austin radio stations and two FM translators/50.1% stake
Country: USA
Deal Size: 39.3m (USD)
Sector: Healthcare
Type: Divestment
Financing: Cash
Status: Agreed
Vendor: Emmis Communications
Buyer: Sinclair Telecable
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