Smulyan's offer, which valued the radio station company at about $50 million, failed to win over the independent directors who evaluated it—attorney Susan Bayh and former CBS Television CEO Peter Lund.
The announcement comes on the eve of the latest deadline that CEO Jeff Smulyan set for shareholders to accept his offer to buy back the company’s stock and one day after Emmis said it would sell four Terre Haute radio stations.
The additional extension might be a sign Smulyan and the board are at odds over price. In a letter to directors evaluating the deal, Smulyan offered no details, stating, “Our entire team looks forward to further discussions … to complete a mutually acceptable transaction.”
The Indianapolis-based media company said it saw a lower profit on declining radio and publishing revenue.
The plaintiff, a former digital content manager at WFNI-AM 1070 “The Fan,” said Emmis didn’t do enough to respond to her complaints after she alleged two of the station’s producers were harassing her.
In a letter to a special committee of the board of directors, Smulyan said he looks forward “to further discussions with the committee and its financial advisor and legal counsel to complete a mutually acceptable transaction.”
Investor Tim Stabosz, who owns 150,000 shares of Emmis stock, called Jeff Smulyan’s plan to take the company private “a slap in the face.”
For the third time in a decade, CEO Jeff Smulyan is making an offer for the outstanding shares of Emmis Communications Corp., which runs radio stations and magazines in Indianapolis and major U.S. markets.
Chuck Williams is replacing Charlie Morgan as Emmis’ Indianapolis market manager. Morgan will remain in New York as market manager.
Nasdaq said in a notice Monday that it informed Emmis Communications Corp. that the company was “now in compliance with all applicable requirements for continued listing on Nasdaq.”
The Indianapolis Motor Speedway’s decision to call off the local television blackout could have a big impact on WRTV, Emmis Communications and race-day advertisers.
Emmis received a letter from the stock exchange in December notifying the company that its stock had closed below its minimum $1-per-share requirement for 30 straight business days.
Nasdaq rules give Emmis 180 days, or until June 6, to get back in compliance.
Indianapolis-based media company Emmis Communications Corp. has settled a breach-of-contract lawsuit it filed in February against popular Los Angeles radio personality Kurt Alexander, better known as “Big Boy.”
Emmis Chairman Jeff Smulyan and his followers have further to travel to reach their goal of turning smartphones into the new-age transistor radio for the masses.