% | $
Quotes you view appear here for quick access.

Emmis Communications Corp. Message Board

  • ff0271 ff0271 Apr 27, 2007 10:37 AM Flag

    Buyout coming soon.

    Good luck longs.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Various commentators have suggested that a buyout is not viable at this point. I disagree.

      Cash on hand $21M
      KGMB Cash 40M
      WVUE Cash 35M
      WQCD Cash 200M

      Cash total 296M
      Net debt 498M

      Smulyan unowned shares 32.6M

      Debt after asset sales = 202M
      Cash for $15 buyout = 489M

      Total debt with buyout 691M

      This is less than 9X EBITDA, and assumes that Smulyan does not add any additional funds of his own.

      • 1 Reply to ff0271
      • Another way to view this:

        Working capital at 60M.
        WQCD Cash 200M.
        WVUE Cash 40M.
        KGMB Cash 38M.
        Smulyan kicks in 15M.

        Smulyan unowned shares about 32.5M.

        Total funds above 353M.

        Funds needed to buy 32.5M shares @ $14 = 455M.
        @ $15 = 487.5M.

        Can Smulyan find a banker to lend him 102-135M against all the remaining assets and future cash flows at Emmis?

        I believe he can, and will.

    • Analyst suggests another potential Cubs bidder
      (Crain�s) � Throw another name onto the lengthening list of potential Cubs buyers.

      Jeff Smulyan, a former Major League Baseball owner whose Emmis Communications Corp. owns two Chicago radio stations, was identified Monday as a possible Cubs bidder by an analyst who follows Indianapolis-based Emmis.

      In a report, Credit Suisse analyst John Klim cited four factors that could make Mr. Smulyan �a very likely bidder� for the Cubs, including his long-standing interest in baseball, evidenced most recently by his failed effort last year to buy the Washington Nationals.

      Mr. Smulyan, who owned the Seattle Mariners from 1989 to 1992, doesn�t rule out a bid � �I�ve learned in life to never say never� � but he says he isn�t pursuing the matter.

      Mr. Klim, who is based in Atlanta, did not immediately return calls seeking comment on Mr. Smulyan�s reaction to his remarks.

      Tribune Co.�s announcement last week that it would sell the Cubs after the end of this season triggered an avalanche of interest, plus a prediction that the Cubs could go for more than $1 billion, which would be a record for any sports franchise.

      The sale will help pay down debt associated with the planned sale of Tribune to Sam Zell.

      �While the Cubs will be leaving the Tribune family, long-term contracts are in place to ensure that Cubs programming will continue on WGN television and radio,� Tribune CEO Dennis FitzSimons wrote in a letter to shareholders.

      In his report, Mr. Klim noted as other reasons for a bid from Mr. Smulyan: his past ownership of the Mariners, his proximity to Chicago and potential synergies between the Cubs and Emmis� two Chicago stations (WLUP-FM and WKQX-FM).

      �A chance to purchase the Cubs is literally a once-in-a-lifetime opportunity,� Mr. Klim wrote, discounting market speculation that Mr. Smulyan was preparing a leveraged buyout offer for the publicly traded Emmis, whose stock has declined by more than 75% in the last six years.

      �We believe Mr. Smulyan may be more interested in using his time, energy and personal capital to make a bid for the storied Chicago baseball franchise. . . .The opportunity to make a bid for a media company Mr. Smulyan already controls is not time-sensitive.�

      In fact, says Mr. Smulyan of an Emmis bid, �That we are evaluating.�

      As for the Mariners, he says, �We just couldn�t make it out there, and we sold it after a while to Nintendo.�

    • Someone bought almost 424,000 shares of the preferred stock today. Last time there was that much volume, there was a buyout offer on the table.

4.02-0.01(-0.25%)12:46 PMEDT