It was “no comment” all around following the one-paragraph note sent around to the press stating that Emmis would be exiting the St. Louis market by selling two FMs to Hubbard and two FMs to Entercom. With St. Louis coming off the board for Emmis, that would leave the company in only three markets: New York City (three stations), Indianapolis (five stations), and Austin (seven stations).
The typically outspoken Emmis CEO Jeff Smulyan had no comment about the deal, that, if approved, will see another 120 part-time and full-time employees come off the Emmis payroll. On January 11, during the Emmis earnings call, Smulyan singled out his St. Louis market for its strong revenue quarter and terrific ratings. And now comes this announcement that it’s being sold.
Emmis has been selling off assets to reduce debt. Magazines the company owned were jettisoned. Emmis sold its Terre Haute stations in late 2016 for $5.2 million. And, of course, the big move was dealing Power 106 in Los Angeles to the Meruelo Group for $86.75 million in May of 2017. WLIB-AM in New York City is also up for sale. It was only in February 2014 that Emmis purchased WBLS-FM and WLIB-AM for $131 million in cash from YMF Media.
The most likely reason for all three companies being tight lipped about the St. Louis deals has to do with the fact that it appears they are not yet signed. The company statement said the two transactions announced Tuesday “are subject to the completion and execution of definitive purchase agreements and the satisfaction of any conditions contained in such agreements.” A typical transaction press release will include CEO quotes from all the companies involved. They gush about how the deal was great for everyone involved. There was also no word on whether Hubbard and Entercom will LMA the stations. And that all still may be coming at some point.
One person who did go on the record yesterday was Emmis St. Louis Market Manager John Beck, who’s been with Emmis since 1984 in that market. Beck told The St. Louis Post-Dispatch two good radio companies will be taking over the stations. “These are a couple of solid broadcasting companies. These are not fly-by-night operations; they’re good radio people.”
Both Hubbard and Entercom are already in the St. Louis market, which Arbitron ranks at #22. Hubbard owns WARH (106.5 FM); WIL (92.3 FM); and WXOS (101.1 FM). Entercom owns KEZK (102.5 FM); KMOX (1120 AM); and KYKY (98.1 FM). Adding two more stations each will certainly help Hubbard and Entercom compete in St. Louis. iHeartMedia owns seven stations.
Emmis’ four St. Louis stations have about 120 full- and part-time employees. Beck told the newspaper no decisions about employees and the future of the company’s offices in Union Station have been made.
Smulyan doesn’t see any “writing on the wall”… what he is doing is market-by-market liquidating the company and taking the money and running. With the debt Emmis has, there’s no other option.
You are wrong, Robert. Emmis has some of the lowest debt ratios in the business.
Smulyan sees the writing on the wall..He see’s where radio is heading!!!