Emmis Communications will sell Texas Monthly magazine to a prominent media family in Texas for $25 million, one more step in its efforts to eliminate debt as CEO and President Jeff Smulyan attempts to take the company private.
Thursday's announcement comes on the eve of the latest deadline Smulyan set for shareholders to accept the deal.
Genesis Park LP, a private equity firm, will be the new owners of Texas Monthly, which launched in 1973. Emmis has owned the magazine since 1998.
The sale is expected to close next month.
"This transaction allows us not only to de-lever our balance sheet, but puts TM in the capable hands of one of Texas' great families, the Hobbys," Smulyan said in a written statement.
Genesis Park, founded by Texan Paul Hobby, owns communications and technology businesses, including CapRock Services, Alpheus Communications and Vivante GMP.
Hobby said the group is “honored to be the third steward” of Texas Monthly, which he called a “beloved Texas brand.”
“Our plan is to bring new ideas, strategic relationships and thoughtful investment that help to take this great story forward,” he said.
Smulyan initially made his offer to take Emmis private on Aug. 18 and set a Sept. 16 deadline for the deal. At the time, he said he planned to sell the company's magazines (except Indianapolis Monthly), its Terre Haute radio stations and a New York station to reduce debt.
Emmis announced on Wednesday that it would sell four Terre Haute radio stations in a three-way deal.
Smulyan has extended the deadline for his offer three times. The latest deadline is Friday.
The company’s stock, which traded as high as $4.25 in late August, closed Thursday at $3.95.