Emmis Parts Ways With Texas Monthly
A day after Emmis Communications announced in a Kalil & Co.-brokered transaction that it has sold its Terre Haute, Ind. radio stations for a total price of $5.2 million, the spin off of the company’s underperforming media assets has continued.
With a decision from special committee members Peter Lund and Susan Bayh to allow shareholders to vote on a privatization plan being shepherded by company founder and CEO Jeff Smulyan still pending, Emmis on Thursday announced that it has sold venerable glossy publication Texas Monthly to Genesis Park LP, an affiliate of a private equity firm led by Paul Hobby for $25 million.
Texas Monthly was launched since 1973 and was acquired by Emmis in 1998.
The transaction is expected to close in early November.
In a statement, Hobby said, “We are honored to be the third steward of this beloved Texas brand. Our plan is to bring new ideas, strategic relationships and thoughtful investment that help to take this great story forward.”
Smulyan said Thursday was “bittersweet” for Emmis, given that Texas Monthly has been a member of the Emmis family for 18 years. But, he explained, “This transaction allows us not only to de-lever our balance sheet, but puts Texas Monthly in the capable hands of one of Texas’ great families, the Hobbys.”
Next up: Buyers for its WLIB-AM 1190 in New York, and Los Angeles and Atlanta magazines.