Emmis Continues To Downsize

Emmis Communications Corp. on Monday announced it has sold its 50.1% controlling interest in six Austin, Texas, radio stations and two FM translators to its minority partner, Norfolk, Virginia-based Sinclair Telecable Inc., for $39.3 million.

The sale represents almost half of the radio stations controlled by Indianapolis-based Emmis, according to the Indy Business-Journal.

Proceeds after transaction-related expenses and taxes are expected to be $28 million, which will be used to pay down debt and for general corporate purposes, Emmis officials said in a regulatory filing. The sale is expected to close later this year.

Emmis bought the interest in the stations in 2003 for approximately $105 million.

Sinclair Telecable is headed by Bob and David Sinclair, who have owned radio stations in Austin since 1995. The company also owns and operates seven FM stations, two AM stations, and two FM translators in Norfolk, Virginia, and in the Sonoma County California wine country.

A translator is a facility that rebroadcasts another station’s radio signal—usually to a wider geographic region.

The Austin radio cluster includes eight station brands: KLBJ-AM, KLBJ-FM, Bob FM, La Zeta, Star 93.3, 101X, Austin City Limits Radio, and Latino 102.7. The Austin cluster will be rebranded as Waterloo Media.

“It’s been a fabulous run in Austin, operating in one of America’s best radio markets with such a special team and winning culture,” Emmis Chairman and CEO Jeff Smulyan said in a written statement. “I can’t say enough great things about the performance of our incredible team in Austin. Our focus at Emmis now will be on transitioning to new areas of growth. I’m thrilled to say we didn’t need to look far to find a committed, well-known buyer who feels the same way about the Austin team. The Sinclairs have been great partners and will undoubtedly take the operation to new heights.”