Emmis Communications Corp., owner of Los Angeles magazine and KPWR-FM (105.9), will go private in a buyout led by Chief Executive Jeffrey Smulyan, the company announced Tuesday.
The deal is technically a merger with JS Acquisition LLC, a company Smulyan owns. JS Acquisition will pay Emmis shareholders $2.40 per share for common stock, while Emmis will exchange its preferred stock for debt notes. The merger plan, including the tender offer for stock and the debt swap, were approved by the Emmis board.
Alden Global Capital, a private asset management company in New York, will provide financing for the deal. The deal values Emmis at $90 million.
Smulyan first announced his intention to buy the company in April. His $2.40 offer represents a 12 percent premium over the stock’s closing price on Tuesday before the merger was announced. As recently as March, before talks of a buyout emerged, the stock traded for less than $1 per share.
Indianapolis-based Emmis owns 23 radio stations and seven regional magazines. In addition to Los Angeles magazine and KPWR, the company also owns Orange Coast magazine in Orange County.
