Emmis Communications has signed an agreement with Sinclair Telecable Inc. to purchase just over 50% of a six-station radio cluster in Austin for approximately $105 million.
Sinclair has operated radio stations since 1997 in a partnership with LBJ Broadcasting Co. As part of the transaction, Emmis will purchase the LBJ stake in the partnership and the LBJ family cashes out of radio. The family owned/operated radio stations in the Austin market for 60 years.
The radio stations involved in the agreement are news/talker KLBJ(AM); rock formatted KLBJ(FM); adult alternative KGSR(FM); another alternative station, KROX(FM); oldies station KEYI(FM) and KXMG(FM), which is a Christian station.
Emmis Chairman/CEO Jeff Smulyan, said he felt that this was an opportunity the corporation could not pass up: “This transaction does not have a material impact on our debt leverage, and makes us a major player in an exceptional growth market.”
Sinclair will contribute the assets of KEYI(FM) to the partnership, leaving Emmis with a 50.1 percent interest and Sinclair with a 49.9 percent interest. Emmis will manage the day-to-day operations of the stations. The agreement gives Emmis an option to buy Sinclair’s interest in five years. Subject to regulatory approvals, the deal is expected to close in Q2.
Emmis, Sinclair Telecable Forge Agreement; LBJ Family Exits Radio
Emmis, Sinclair Telecable Forge Agreement; LBJ Family Exits Radio