Emmis CEO Withdraws Offer to Privatize Company (posted, 8/7)
Emmis Communications CEO Jeffrey Smulyan announced in a SEC filing and letter to Emmis Board of Directors Friday that he was withdrawing his bid to take his company private. Smulyan had formed ECC Acquisition Inc. and offered $15.25 a share or $567 million to buyout the publicly traded company, which publishes Texas Monthly, Indianapolis Monthly, Cincinnati Magazine, Los Angeles Magazine, Atltanta Magazine and Illinois-based Country Samplex, and owns dozens of television and radio stations.
Smulyan said in the filing and letter that "despite good faith negotiations over the past three months, it has become clear that ECC will be unable to reach agreement with the Special Committee as to terms of a proposal from ECC that they would recommend for submission to a shareholder vote." He also noted that during this period there has been a significant decline in the broadcasting sector valuations and an increased competitive environment, as well as a downturn in the financing markets.