The FCC filings for the three deals reveal a bit more info regarding how the deals are structured and show a slightly different price than previously announced.
Emmis will still receive $4.3 million in its sale of Country “Hi 99” WTHI Terre Haute and the intellectual property of Classic Rock “105.5 The River” WWVR West Terre Haute to Midwest, however $300,000 of that will be the proceeds of Midwest’s divestment of Classic Country “95.9 Duke-FM” WDKE Seelyville to DLC Media.
The price DLC Media is paying for CHR “B92.7” WFNB Brazil, and Sports “1130/99.5 The Fan” WFNF Brazil/W293AL Rochester, and the license for 105.5 WWVR is $865,000 and not the $900,000 listed in the Emmis press release last week.
Original Report 10/12: Three transactions involving three companies will shakeup the ownership structure in Terre Haute IN.
The result will see Emmis Communications exit the market, Midwest Communications improve its holdings, and DLC Media enter the market.
The second deal will see the rest of Emmis’ Terre Haute holdings: CHR “B92.7” WFNB Brazil, and Sports “1130/99.5 The Fan” WFNF Brazil/W293AL Rochester, and the license for 105.5 WWVR go to DLC Media for $900,000.
Finally, Midwest will divest Classic Country “95.9 Duke-FM” WDKE Seelyville to DLC Media for an undisclosed amount to remain under the ownership limits in the market.
When the dust settles, Midwest will own AC 98.5 WBOW Paris IL, Country “Hi 99” WTHI, CHR “100.7 Mix-FM” WMGI Terre Haute, Country “Q102.7” WDWQ Terre Haute (Future home of WWVR to remove competition with WTHI?), and Talk 1230 WIBQ Terre Haute/1440 WPRS Paris. DLC Media will add CHR “B92.7” WFNB Brazil, Classic Country “95.9 Duke-FM” WDKE Seelyville, the license for 105.5 WWVR West Terre Haute, and Sports “1130/99.5 The Fan” WFNF Brazil/W293AL Rochester.
Emmis Communications Corporation (Nasdaq: EMMS) has announced agreements to sell Terre Haute’s WTHI-FM 99.9 FM, WWVR-FM 105.5 The River, WFNB-FM B92.7, and WFNF-AM 1130AM/99.5FM The Fan. The sales will deliver gross proceeds to the Company of $5.2 million.
Emmis will sell the assets of WTHI-FM and the intellectual property of WWVR-FM to Midwest Communications, Inc. for $4.3 million. Midwest Communications is a family-owned media company with radio properties in Wisconsin, Michigan, Minnesota, North Dakota, South Dakota, Indiana, Illinois and Tennessee. Headquartered in Wausau, WI, Midwest Communications was founded in 1958.
Emmis will also sell the assets of WFNF-AM, WFNB-FM and WWVR (other than the IP for that station) for $0.9 million to DLC Media, Inc., a company owned by Dave Crooks, who operates radio stations in other Indiana markets.
Because Midwest is currently at FCC ownership limits in the Terre Haute market, Midwest is also selling one of its stations, WDKE-FM, to DLC Media.
These three transactions are cross conditioned and will result in gross proceeds to Emmis at closing of $5.2 million, subject to working capital adjustments.
Emmis has owned WTHI and WWVR since 1998, adding WFNB and WFNF in 2012. The transaction is subject to FCC approval and is expected to close after the first of the year.
“The sale of our stations in Terre Haute, while difficult, will help us further our goal of de-levering our balance sheet,” said Emmis Chairman & CEO Jeff Smulyan. “We are thrilled the buyers value radio and have long traditions of success in smaller markets, like Terre Haute. I’d also like to thank our people at these stations. They have been tremendous stewards of their brands and wonderful ambassadors of Emmis’ culture. We wish them continued success.”
Kalil & Co., Inc. served as the broker in the transaction.