IBJNews

CEO Smulyan gets OK to take Emmis private

Back to TopCommentsE-mailPrintBookmark and Share

Emmis Communications Corp. agreed to be acquired for about $90 million by closely held JS Acquisition LLC, a company formed by Emmis Chairman and CEO Jeffrey H. Smulyan.

Emmis’s board unanimously approved the transaction, the companies said Tuesday in a statement. Smulyan’s offer was announced on April 26.

Acquisition LLC is offering $2.40 a share in cash, a 12-percent premium to Tueday’s closing price of $2.14, according to Bloomberg data. The stock has gained 84 percent this year in NASDAQ Stock Market trading.

Emmis, based in Indianapolis, owns 23 radio stations in cities including Los Angeles, Chicago and New York. The company also operates radio networks in Slovakia and Bulgaria and publishes magazines including Indianapolis Monthly.

Smulyan tried to take the company private four years ago, but that deal bogged down at the board level over price. As talks dragged on, credit market soured, and Smulyan ended discussions.

The 2006 offer of $15.25 per share—a bid that valued the entire company at $567 million—looks rich by today’s standards. The stock plunged as low as 24 cents last July and rallied to around $2.30 before Smulyan unveiled his new, $2.40-per-share buyout offer.

Within hours of the April 26, law firms began issuing press releases saying they were looking into filing breach-of-fiduciary-duty suits. Two such lawsuits were filed this montn in Marion Superior Court.

Smulyan, 63, is the company’s controlling shareholder. Although he owns less than 20 percent of the shares, most of his stock has special voting rights on nearly all matters except a going-private transaction. In that scenario, each of his shares has a single vote, putting him on equal footing with rank-and-file shareholders.

Yet even with the diminished voting power, experts believed Smulyan could win enough support to close his deal—in part because other shareholders recognize this might be the best they can get.

This story will be updated.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. In reality, Lilly is maintaining profit by cutting costs such as Indiana/US citizen IT workers by a significant amount with their Tata Indian consulting connection, increasing Indian H1B's at Lillys Indiana locations significantly and offshoring to India high paying Indiana jobs to cut costs and increase profit at the expense of U.S. workers.

  2. I think perhaps there is legal precedence here in that the laws were intended for family farms, not pig processing plants on a huge scale. There has to be a way to squash this judges judgment and overrule her dumb judgement. Perhaps she should be required to live in one of those neighbors houses for a month next to the farm to see how she likes it. She is there to protect the people, not the corporations.

  3. http://www.omafra.gov.on.ca/english/engineer/facts/03-111.htm Corporate farms are not farms, they are indeed factories on a huge scale. The amount of waste and unhealthy smells are environmentally unsafe. If they want to do this, they should be forced to buy a boundary around their farm at a premium price to the homeowners and landowners that have to eat, sleep, and live in a cesspool of pig smells. Imagine living in a house that smells like a restroom all the time. Does the state really believe they should take the side of these corporate farms and not protect Indiana citizens. Perhaps justifiable they should force all the management of the farms to live on the farm itself and not live probably far away from there. Would be interesting to investigate the housing locations of those working at and managing the corporate farms.

  4. downtown in the same area as O'malia's. 350 E New York. Not sure that another one could survive. I agree a Target is needed d'town. Downtown Philly even had a 3 story Kmart for its downtown residents.

  5. Indy-area residents... most of you have no idea how AMAZING Aurelio's is. South of Chicago was a cool pizza place... but it pales in comparison to the heavenly thin crust Aurelio's pizza. Their deep dish is pretty good too. My waistline is expanding just thinking about this!

ADVERTISEMENT