The stock of Emmis Communications Corporation (NASDAQ:EMMS) closed at $4.15 gaining 2.98% in yesterday’s trading session. It was on February that the company went ahead to make the announcement regarding the deal it had struck earlier on that would see it eventually sell out its St. Louis Radio Stations.
An official working with it said that part of their plan was to sell out the St. Louis Radio Stations as well as The Point (KPNT, 105.7 FM).The one expected to purchase it will be Hubbard Radio which according to sources will be obtaining it at $45 million.
The company has said that all the transactions will be subject to the FCC approval, pro-rations as well as the closing adjustments.
A person familiar with the latest proceedings said, “Emmis stated that the net proceeds of the transaction, after deducting transaction-related costs and estimated tax payments, would be used to repay term loans outstanding. The St. Louis team has been an integral part of the Emmis radio station family since 1984.”
Basically, the Entercom and Hubbard are at the frontline in terms of the radio operators that indicate a great determination to add great people as well as great brands to the St. Louis clusters. If all moves according to plan, it is expected that the transaction might be coming to a close in Q1 FY18.
The leading media Company according to sources pays a huge focus on radio broadcasting but the point worth noting is the fact that it is currently associated with operating the 9th largest publicly-traded radio portfolio. That is of course on the basis of the total number of listeners. At this point in time it boasts of having about 3 AM and 16 FM radio stations and they are based in Los Angeles, New York, Indianapolis, Austin and St. Louis.
An official working with Emmis while addressing several news reporters after attending a business conference said that as a company they were feeling the effect of the changing business dynamics. He said that it was difficult to maintain a company’s spot in the market leave alone moving one step up but they were doing all within their means to deliver quality services.