Emmis Board Approves Bid to Take Company Private

The second time’s a charm for Jeff Smulyan, chairman and CEO of Emmis Communications. Smulyan’s second bid to take the company private was approved Tuesday evening (May 25) by Emmis’ board of directors. A committee of disinterested directors of Emmis also recommended approval of the offer and merger agreement.

The Indianapolis-based owner of radio stations in the nation’s largest markets and a magazine publishing division went public in 1994.

Under the terms of the merger agreement, valued at about $90 million, JS Acquisition, a company formed by Smulyan, will offer to buy all outstanding shares of Class A Common Stock of Emmis for $2.40 per share. Financing for the transaction will be provided by an affiliate of Alden Global Capital, a private asset management company.

The final completion of the deal is subject to conditions, including approval by a majority of the owners of both Class A and Class B stock. Alden Global Capital has 41.4 percent of the preferred stock.

Smulyan, who founded Emmis in 1979, first tried to take the company private in May 2006.

Publish date: May 26, 2010 https://dev.adweek.com/tv-video/emmis-board-approves-bid-take-company-private-115441/ © 2020 Adweek, LLC. - All Rights Reserved and NOT FOR REPRINT