Emmis sold one low ratings NYC black format station in a deal worth almost 100 million dollars this month --- "EMMS said its deal in New York to sell Kiss-FM and lease 98.7 to Disney was worth at least $96 million."
It is interesting that Entravision has 4 or 5 radio stations in LA with demographic growth and better share than Kiss-FM.
It is possible Entravision would strategically sells a few key assets, pay off all debt, and hit us with a massive dividend. EBITDA is very strong and management is quite smart.
I agree Entravision is probably strategically selling a few key assets to pay off all of the debt management is smart. Why would they have paid a dividend to all shareholders if they were not? This is a company that speaks of true long term investment. As the spanish market grows we will probably look back at this company and ask why we did not hold or buy.
They have a lot of earnings power. They still have room to reduce operating expense dramatically and/or they can sell a few high value assets. The standalone LA radio assets would be a possible target.
To put some context around it they have about 1.4 billion in assets written down to current valuation during the crash. The debt is minimal compared to their true asset values and earnings potential. The recent FB bust is evidence of an irrational bubble that is popping in EVC's favor.