The originator of the sports radio format says it is time for his company “to do other things”. Emmis Corp. will present a three-year plan to shareholders that will take the company private and make it easier to sell the last two radio stations it owns.
Shareholders will vote on the plan on August 29. If approved, Emmis will have three years to buy back shares at a rate that rises from $6 per share in the first year, to $6.50 in the second year, and $7.25 in the third. It will be the third attempt by CEO Jeff Smulyan to take the company private.
The news has been met positively on Wall Street. Emmis is traded on the Nasdaq OTC exchange. Upon the news breaking, the company’s stock price rose to $5 per share, a jump of 63%.
“We’re excited about our new ventures,” Smulyan told Inside Radio. “I love the radio business more than anybody, but it’s time for us to do other things.”
Emmis still owns ESPN New York 98.7 and WLIB. The ESPN station is currently being run by Good Karma Brands as part of a local management agreement with ESPN. Smulyan says that does not guarantee that Good Karma will end up with ownership of the station.
“We’ve been talking to a number of different people, and whoever gets the price, they’ll be the buyer,’ he said.
Last year, Emmis sold off its cluster in Indianapolis to Radio One for $25 million. The company also dropped the word “Communications” from its name at that time.
