This includes the debt market right? EMMS debt holders have to be excited about the possibility that they might get the incredibly valuable assets of EMMS if the company is unable get out from under the crushing debt that at the very least will force EMMS to sell some of its stations just to avoid bankruptcy.
I realize that Class B common stock (owned all by Smulyan) controls 65.1% of the total voting power, but what percent of the company does Smulyan actually own? SEC Schedule 14A shows 32.9 million shares of Class A common stock outstanding (160,507 owned by Smulyan) and 4.9 million shares of Class B common stock issued and outstanding. Does this mean that Smulyan owns roughly 13% (5.1m/37.8m) of the company? The purpose of my question is to determine what incentive Smulyan has to keep the company out of bankruptcy -- not that I feel a BK is likely at this time.
I suppose if it's a Citadel type deal, they could put it in bankruptcy, and give him 10% of the new company...but they certainly wouldn't give him control. Smulyan would never want to give up control. He will do everything possible to keep EMMS out of bankruptcy. My guess is that talk of bankruptcy is absolute poppycock. If the revenue trend was DOWN instead of UP, then fine, we would be in danger. But the economy is going to grow 3-5% each of the next 3 years. And revenues at EMMS should continue to grow, at least in the low single digit percent for the next 3 years, I believe. The magazine division should have a bit of a bounceback also, after the devastation of the last few years. This is a great speculation at 46 cents. That's what high leverage is all about. Higher risk. But even higher reward (at these prices!)