Emmis Sells Interest in Austin Cluster for $39.3 Million
|RADIO ONLINE | Tuesday, June 18, 2019|
Emmis Communications inks an agreement to sell its 50.1% controlling interest in a partnership that owns six Austin radio stations and two FM translators to its partner Sinclair Telecable for $39.3 million. The company and Sinclair have been partners since Emmis purchased its controlling interest in July, 2003. Sinclair Telecable is not affiliated with Sinclair Broadcast Group, licensee of KEYE-TV in Austin.
Sinclair Telecable is headed by Bob and David Sinclair, who have owned radio stations in Austin since 1995. The company also owns and operates 7 FM, 2 AM, and 2 FM translators in Norfolk and in the Sonoma County California wine country.
The Austin radio cluster includes eight stations: 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.
"Its been a fabulous run in Austin, operating in one of Americas best radio markets with such a special team and winning culture," said Emmis Chairman/CEO Jeff Smulyan. "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.Im thrilled to say we didnt 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."
Bob Sinclair said, "David and I echo Jeffs sentiments about the absolute excellence of our entire staff in Austin, from our VP/Market Manager Scott Gillmore, VP of Sales Bruce Walden, and VP of Programming Chase Rupe, to our advertising sales force, great on-air personalities, and all of our support people. The fact that the vast majority of our employees have been with the radio stations for many years is a credit to Jeff, his management team, and reputation that Emmis has had for decades."
he continued, "David and I are 100% committed to continuing the great community service that these stations have provided since their inception. We had the honor of being partners with Luci Baines Johnson and the LBJ Holding Company before Emmis and I would like to say how proud we have been to be associated with these heritage stations for so long. I live in Austin and we look forward to many more years serving the Austin community and of course providing great advertising opportunities to businesses in this dynamic market."
Moelis & Company LLC represented Emmis as financial advisor.