Jeff Smulyan, CEO of Emmis Communications, will to take the company private.
The Indianapolis-based media company, which owns radio stations in the largest markets and a magazine publishing division, went public in 1994.
JS Acquisition, a group led by Smulyan, and Alden Global Capital, a major stockholder of Emmis signed a letter of intent that would allow JSA to purchase all the shared of Class A common stock of Emmis for $2.40 a share, slightly hire than what the stock is currently trading. Once the transaction is complete, Smulyan would hold substantially all of a new class of voting common stock and Smulyan and his affiliates would hold all of the outstanding common stock of JS Acquisition.
The deal is subject to several conditions including stockholder approval and approval of the board of directors.
It’s the second time Smulyan, who founded the company in 1979, has tried to take the company private. In May 2006, Smulyan tried to acquire Emmis’ public shares, but was forced to withdraw the offer when he could not reach an agreement with the company’s board of directors.