After Five Years, MediaCo Fully Repays Emmis Debt

In 2019, Emmis Communications sold its full ownership of New York City’s 107.5 WBLS and Hot 97 (WQHT) to MediaCo Holding for $91.5 million in cash, a $5 million note, and a 23.72% equity stake. Now that debt has been repaid and MediaCo stands on its own.

MediaCo announced it has fully repaid – in cash – $7.3 million on that convertible promissory note held by Emmis. With the repayment complete, Emmis representatives have stepped down from MediaCo’s Board of Directors, effective immediately, with complete control going to Soohyung Kim’s Standard General.

This is the latest of many moves MediaCo has made in 2024 focusing on the company’s financial stability and expansion.

In April, MediaCo acquired Estrella Media’s network, content, digital, and commercial operations, then launched two new digital radio stations piggybacking off WBLS and WQHT in August.

In October, MediaCo appointed Albert Rodriguez as interim Chief Executive Officer and President, succeeding Jacqueline Hernández, who continues to serve as a Board member. Rodriguez, formerly President and COO of Spanish Broadcasting System, joined MediaCo in September as Chief Revenue Officer and President of the Audio Division.

Additionally, Rene Santaella was named Chief Operating Officer, bringing experience from roles at Sony Pictures Television Digital Networks and Disney Interactive.

In the third quarter ending September 30, MediaCo reported net revenues of $29.86 million, a significant increase from $6.45 million in the same period last year, driven by new revenue sources. However, operating expenses rose to $36.73 million from $8.41 million, resulting in an operating loss of $6.87 million, up from $1.96 million year-over-year. Despite this, the company reported net income of $54.29 million, up from $2.92 million, reflecting gains from the Estrella Media acquisition.

Rodriguez commented, “We are pleased to take this step forward. This eliminates our only near-term maturity and positions us to continue our expanding mission to reach diverse audiences and drive growth for the future.”