[opendtv] News: Emmis Exploring Sale of Stations
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Wed, 11 May 2005 08:02:15 -0400
"Given the challenges facing over-the-air broadcasting today, it is
necessary for us to focus on our existing radio holdings."
Emmis Chairman and CEO Jeff Smulyan
There has been much discussion of late about "the death of
broadcasting" as we know it. This issue bubbled up in numerous places
at NAB, and recently several financial analysis groups have
essentially stated that television broadcasters do not have a future.
Stock prices for corporations heavily invested in TV broadcast
properties have languished for several years, even as as revenues
have recovered from the last recession.
In what may be a sign of the times, Emmis Communications has
announced that they are exploring the possibility of selling the
groups 16 TV stations in order to boost the corporations' flagging
stock price. Could this be the beginning of the end game, where the
media conglomerate dinosaurs feed upon the dwindling food supply?
Regards
Craig
http://www.broadcastingcable.com/article/CA600619.html?display=Breaking+News&referral=SUPP
Emmis Looking to Sell Stations
By Allison Romano -- Broadcasting & Cable, 5/10/2005 12:30:00 AM
Emmis Communications is exploring the possibility of selling its
television stations, the company said today. Indianapolis-based Emmis
owns 16 TV stations and 25 radio stations, as well as a radio
network, international radio stations and a small publishing division.
"Given the challenges facing over-the-air broadcasting today, it is
necessary for us to focus on our existing radio holdings," Emmis
Chairman and CEO Jeff Smulyan said on a conference call with
analysts. The company has hired The Blackstone Group as their
financial advisor to broker possible deals.
The possibility of a sale signifies a dramatic shift in Smulyan's
stance on television. Less than 18 months ago, he unveiled a plan to
air popular cable channels via digital broadcast. The idea never got
off the ground, but it was a bullish attempt to produce a second
revenue stream for broadcast stations and maximize digital spectrum.
Smulyan said he would consider selling the entire group or parceling
off the stations. He also says television group President Randy
Bongarten is investigating a management buyout in which Emmis might
retain an interest in the stations.
Emmis owns five CBS stations, two WBs, three NBCs, five Fox
affiliates and one ABC station. Its largest outlets are KOIN Seattle
and WVUE New Orleans.
Also today, Emmis said its board of directors approved a "Dutch
Auction" tender offer to buy back $400 million in stock. Smulyan said
his company's stock is undervalued, and the buyback is the "best
possible use of capital."
Via Shoptalk
Emmis Exploring Sale of Stations
By Jay Sherman
<http://www.tvweek.com>http://www.tvweek.com
In a move designed to jump-start its flagging stock price while at
the same possibly revive the TV station mergers and acquisitions
market, Emmis Communications on Tuesday said it was exploring the
sale of its 16 television stations.
The Indianapolis-based company said it hired The Blackstone Group as
its financial advisor to evaluate strategic alternatives for its
television assets. Chairman and CEO Jeffrey Smulyan said during a
conference call Tuesday that he is open to all options, including a
possible buyout by the management of the TV station operation.
The news sent Emmis shares soaring Tuesday morning. By midday Emmis'
stock was up 20 percent, or more than $3, to trade at more than
$18.50, after having trended downward for the past six months.
A sale of the TV assets comes as the company launches a stock buyback
program to repurchase up to 20.25 million shares.
Both strategies are designed to jump-start Emmis' stock price, which
has languished for quite a while.
Mr. Smulyan said that the challenges facing station groups these days
forced the company to rethink its commitment to the business.
"We hope we can find our group a home that will allow them to
continue and grow," he said during the conference call. "It's a
difficult decision, but it's a right decision, and it sets us on a
course that gives us the best opportunity to go forward in the
future."
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