INDIANAPOLIS, May 9, 2017 /PRNewswire/ -- Emmis Communications
(Nasdaq: EMMS) has announced an agreement to sell KPWR-FM Power 106
in Los Angeles to an affiliate of
the Meruelo Group for $82.75 million,
subject to closing adjustments and prorations, pending FCC and
other regulatory approvals.
"Power 106 has been part of the Emmis family for more than 32
years, so this day is bittersweet, but I am confident that the
station and our team are in good hands," said Jeff Smulyan, Chairman and CEO of Emmis
Communications. "The Meruelo Group will be great owners of this
historic brand, and take it to even greater heights."
A Local Marketing Agreement (LMA) will begin promptly following
the expiration or early termination of the waiting period under the
Hart-Scott-Rodino Antitrust Improvements Act.
The Meruelo Group, whose Meruelo Media affiliate acquired Los
Angeles TV station KWHY-22 in 2011 and radio station KDAY-FM in
2014, is the largest minority owned media group in
California. Following its participation in the FCC TV
spectrum auction earlier this year, Meruelo Media is now
re-investing a portion of the auction proceeds to expanding its
media holdings with the acquisition of heritage station KPWR-FM.
Closing of the KPWR-FM sale is subject to FCC approval of the
assignment of the KPWR-FM FCC license, as well as receipt of the
incentive auction proceeds.
"The acquisition of Power 106 is a game changer for our group
and our media division," stated Alex
Meruelo, Chairman and CEO. "As a fan and someone who
has had a business relationship with this station for more than 30
years, I understand the importance of Power 106 to this
community. We are committed to bringing the resources, talent
and passion necessary to make this legendary brand the #1 radio
station in Los Angeles."
Emmis purchased KPWR-FM from Century Broadcasting in May
1984. The transaction is expected to close in the back half
of 2017.
About Emmis Communications
Emmis Communications
Corporation is a diversified media company, principally focused on
radio broadcasting. Emmis owns 16 FM and 3
AM radio stations in New
York, Los Angeles,
St. Louis, Austin (Emmis has a 50.1% controlling interest
in Emmis' radio stations located there) and Indianapolis. Emmis also developed and
licenses TagStation®, a cloud-based software platform that allows a
broadcaster to manage album art, metadata and enhanced advertising
on its various broadcasts, and developed NextRadio®, a smartphone
application that marries over-the-air FM radio broadcasts with
visual and interactive features on smartphones.
About Meruelo Group
Meruelo Group is a privately
held, diversified management company founded in 1986 by US Latino
business executive Alex Meruelo. The
Meruelo Group serves a diversified portfolio of 35+ companies
across 7 primary industries with over 8,000 employees. The
Meruelo Group portfolio is comprised of affiliates in a wide range
of industries including: banking and financial services;
construction; hospitality & gaming; media; restaurant food
services: real estate management and development; and, private
equity investing. For more information please visit
www.meruelogroup.com
Note: Certain statements included in this press release which
are not statements of historical fact, including but not limited to
those identified with the words "expect," "will" or "look" are
intended to be, and are, by this Note, identified as
"forward-looking statements," as defined in the Securities and
Exchange Act of 1934, as amended. Such statements involve known and
unknown risks, uncertainties and other factors that may cause the
actual results, performance or achievements of Emmis to be
materially different from any future result, performance or
achievement expressed or implied by such forward-looking statement.
Such factors include, among others:
- general economic and business conditions;
- fluctuations in the demand for advertising and demand for
different types of advertising media;
- our ability to service our outstanding debt;
- competition from new or different technologies;
- increased competition in our markets and the broadcasting
industry including our competitors changing the format of a station
they operate to more directly compete with a station we operate in
the same market;
- our ability to attract and secure programming, on-air
talent, writers and photographers;
- inability to obtain (or to obtain timely) necessary
approvals for purchase or sale transactions or to complete the
transactions for other reasons generally beyond our
control;
- increases in the costs of programming, including on-air
talent;
- inability to grow through suitable acquisitions or to
consummate dispositions;
- changes in audience measurement systems;
- new or changing regulations of the Federal Communications
Commission or other governmental agencies;
- war, terrorist acts or political instability; and
- other factors mentioned in documents filed by the Company
with the Securities and Exchange Commission.
Emmis does not undertake any obligation to publicly update or
revise any forward-looking statements because of new information,
future events or otherwise.
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SOURCE Emmis Communications