Emmis Communications Corp. has agreed to sell its Internet marketing subsidiary to Hailey, Idaho-based Marketron Broadcast Solutions LLC.

The Indianapolis-based media company announced the sale Tuesday. Terms of the transaction, set to close Oct. 31, were not divulged.

Emmis Interactive Inc. provides a content-management system, data-analytic tools and related services principally to radio operators.

Emmis said it will retain an economic interest in future revenue derived from some intellectual property developed by the former subsidiary.

Emmis Interactive had been operating at a loss and reported revenue for the 12 months ending Aug. 31 of $4.9 million, Emmis said.

The company once had high hopes for Emmis Interactive, which grew from one to 65 employees within four years of its 2002 founding, Emmis CEO Jeff Smulyan once told investors. Current employment was not disclosed.

The company said it will pay about $600,000 in severance costs to employees not retained by Marketron.

Emmis said the sale will allow the company to focus on the full commercialization of its FM analog/HD radio smart-phone application and the cloud-based platform that supplies data for the smart-phone application.