MediaCo Completes $7.3M Promissory Note Repayment
| RADIO ONLINE | Tuesday, November 26, 2024 | 3:41pm CT |
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 MediaCo |
MediaCo Holding Inc. has fully repaid the $7.3 million convertible promissory note held by Emmis Communications Corp. The repayment was made in cash, marking the completion of a financial obligation stemming from MediaCo's formation in 2019. As a result, Emmis representatives have resigned from MediaCo's board of directors, effective immediately.
Albert Rodriguez, interim Chief Executive Officer and President of MediaCo, expressed optimism about the move. "We are pleased to take this step forward," Rodriguez said. "This eliminates our only near-term maturity and positions us to continue our expanding mission to reach diverse audiences and drive growth for the future."
Formed through a merger of New York stations WBLS and WQHT (Hot 97) with Estrella Media's network, MediaCo now oversees significant broadcasting and content assets across the U.S. This includes stations in New York, Los Angeles, Dallas and Houston. Additionally, the company manages the Estrella Television Network, offering Spanish-language programming, and produces radio content led by personalities like Funkmaster Flex and Don Cheto.
MediaCo's journey has been marked by changes in ownership structure. In late 2019, Emmis Communications transitioned from sole ownership of WBLS-FM and WQHT-FM (Hot 97) to a 23.72% stake in the newly formed MediaCo. The remaining 76.28% interest was acquired by Standard General, a firm controlled by Soohyung Kim. A promissory note was created at the time, allowing for installment payments to Emmis, which are now fully repaid.
In addition to its New York-based stations, MediaCo has expanded its reach through an operational agreement with Estrella Media. This partnership includes the management of Que Buena's Southern California radio operations and regional Mexican stations in Dallas and Houston, adding to MediaCo's diverse portfolio.
MediaCo, trading under the ticker symbol MDIA on Nasdaq, has experienced notable stock price volatility in 2024, with shares recently trading at $1.32 as of Tuesday morning.
