Indianapolis-based Emmis Communications Corp. (Nasdaq: EMMS) has signed definitive agreements with Minnesota-based Hubbard Radio LLC and Entercom Communications Corp. (NYSE: ETM) in Pennsylvania to sell its radio stations in St. Louis. The company expects the sales, which total $60 million, to close in its fiscal first quarter.
Emmis plans to sell KSHE 95 FM and The Point 105.7 FM to Hubbard in a $45 million deal. The company will also sell FM News Talk 97.1 and NOW96.3 FM to Entercom for $15 million.
The deals remain subject to approval from the Federal Communications Commission and customary closing conditions. Emmis says, when the sales are complete, the company will use the net proceeds to repay outstanding loans.
"The St. Louis team has been an integral part of our Emmis family since 1984. We love our people in St. Louis and the team’s performance has been nothing short of remarkable," said Jeff Smulyan, chief executive officer of Emmis. "Hubbard and Entercom are both tremendous radio operators and they are adding great people and great brands to their St. Louis clusters."
Hubbard and Entercom have also entered into Local Marketing Agreements with Emmis, which state they will begin to provide programming and sell advertising on the stations they intend to acquire on March 1.