Emmis stock continues to fall in price, as Smulyan's deal looks doubtful
Jeff Smulyan's plan to take Emmis Communications has hit even more roadblocks, following preferred shareholders pushing back their decision a fifth time on Friday night. Now RBR-TVBR reports that one of Smulyan's financial backers for the deal, Alden Global Capital, has pulled out of the deal. Alden had agreed to the terms of JS Acquisition's deal, but has now reconsidered and told Smulyan it will not fund the privatization of Emmis.
A spokesperson for Emmis told RBR-TVBR, "We thought we had a deal. Alden reconsidered. You’ll have to ask them why. Alden has communicated to us that they are having internal meetings related to the transaction this week."
Also, Smulyan's JS Acquisition has once again extended its privatization offer for Emmis, as well as its offer to exchange one form of its shares for another. The offer had been set to expire last Friday, August 27, but is now extended to this Thursday, September 2 at 5 p.m. ET.
The continued uncertainty over the Emmis deal has hurt its stock price in recent days, as it is trading at $1.60/share as of noon today, down from $1.72 24 hours ago.