Emmis Corporation, formerly known as Emmis Communications, is set to go private after Thursday’s shareholder meeting, following overwhelming approval for amending its articles of incorporation. Emmis Corporation Chairman Jeff Smulyan expressed gratitude to the shareholders and highlighted the move as an opportunity to reinvest in current businesses and explore new ventures.
Don’t expect the transition to move quickly. The amendments to the articles allow for the redemption of Emmis’ Class A Common Stock at varying prices over a three-year period starting August 29, 2023. Specifically, the shares can be redeemed at $6.00, $6.50, and $7.25 during the first, second, and third years, respectively. If sufficient funds are available in an escrow account, the Class A Common Stock will be mandatorily redeemed.
Emmis Founder Jeff Smulyan owns all of the Class B Common Stock. As part of the amendment, Smulyan has agreed not to block the company’s liquidation if all Class A Common Stock hasn’t been redeemed by August 29, 2026.
Smulyan said, “I am grateful to the Emmis shareholders for their tremendous support of our proposal to amend our articles of incorporation, which will give us the opportunity to return significant capital, invest in our current businesses and seek new ventures.”
