At the end of November 2019, Urban WBLS-FM 107.5 and Hip-Hop WQHT-FM “Hot 97” in New York shifted from Emmis Communications’ full ownership to a newly created entity that saw Emmis become a 23.72% interest holder in MediaCo Holding Co.
The remaining 76.28% interest went to the Soohyung Kim-controlled Standard General.
A Promissory Note was signed as part of its financial obligations, allowing it to pay the Jeff Smulyan-led Emmis in installments. Those installment payments are over.
Branding itself as a “leading multicultural media company,” MediaCo has fully repaid — in cash — a $7.3 million convertible promissory note held by Emmis Communications Corp. in MediaCo.
With full repayment of the note, Emmis representatives on MediaCo’s Board of Directors have resigned, effective immediately.
The repayment, MediaCo says, reflects its focus on strengthening its balance sheet.
“We are pleased to take this step forward,” said Albert Rodriguez, interim Chief Executive Officer and President of MediaCo. “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.”
While MediaCo is the licensee for WQHT “Hot 97” and WBLS in New York, it also has an operational agreement for the radio and TV properties held by Estrella Media. This sees MediaCo handling the management of the “Qué Buena” radio operation in Southern California and regional Mexican radio stations in Dallas and Houston once part of the Liberman Broadcasting family. The family lost control of the radio stations and its “Estrella TV” broadcast television operation in bankruptcy, with Estrella under CEO Peter Markham emerging with the Burbank, Calif.-based company.
MediaCo trades as “MDIA” on Nasdaq and just before 11am Eastern on Tuesday was trading at $1.3225 per share, up slightly from Monday’s closing price. MDIA has seen a volatile 2024, with shares rapidly spiking in early April, moderating by late May, torpedoing in to the $5 range in mid-August, and then rapidly receding in September — dropping to $1.10 on October 7.
