Emmis Sells Texas Monthly for $25 Million
Paul Hobby, whose family once owned the Houston Post, purchases magazine.
Emmis Communications has sold Texas Monthly for $25 million to private equity firm Genesis Park. The deal, which includes the magazine, its archives, and a custom publishing business, is expected to close in November.
"Texas Monthly has been a member of the Emmis family for 18 years, so today is bittersweet," Jeff Smulyan, chairman and CEO of Emmis, said in a press release. "This transaction allows us not only to de-lever our balance sheet, but puts Texas Monthly in the capable hands of one of Texas' great families, the Hobbys."
Texas Monthly is the first magazine sold since Emmis revealed plans to offload its magazine properties in August. The publicly traded company is looking to privatize and reduce its debt by focusing on radio assets.
It will retain Indianapolis Monthly, but Atlanta, Cincinnati, Los Angeles, and Orange Coast magazines are still for sale.
Paul Hobby, founder of Genesis Park, will take on the role of CEO. No publisher has been announced, and all other staff will be retained initially, Hobby tells Folio:.
“I love Texas, I love the magazine,” Hobby tells Folio:. “I understand the power of the written word. There’s some great stories to tell in Texas, so when it was for sale, we were the right buyer.”
The Austin headquarters of Texas Monthly, as well as its Dallas location, will stay where they are. The Houston office, however, will move into Genesis Park offices.
Moving into the future, Hobby says he plans to strengthen Texas Monthly's digital presence, and expand into events and video.
This is the sole publishing asset under Genesis Park, though the Hobbys are well-known in the industry. Paul Hobby’s grandfather William P. Hobby served as governor of Texas, as well as publisher of the Houston Post, which the family sold in 1983 before the paper folded in 1995. Paul's father, Bill Hobby, was Lt. governor of Texas, as well as president of the newspaper.