Smulyan Withdraws Bid To Take Emmis Private
August 4, 2006 at 1:39 PM (PT)
EMMIS COMMUNICATIONS Chairman and CEO JEFF SMULYAN and his wholly-owned corporation ECC ACQUISITION, INC. has withdrawn its MAY 7 non-binding offer to purchase shares of EMMIS COMMUNICATIONS CORP. in a going-private transaction. The withdrawal was communicated today in a letter to the EMMIS Board of Directors.
JEFF SMULYAN stated that "despite good faith negotiations over the past three months, it has become clear that ECC will be unable to reach agreement with the Special Committee as to terms of a proposal from ECC that they would recommend for submission to a shareholder vote." Mr. SMULYAN also noted that during this period there has been a significant decline in the broadcasting sector valuations and an increased competitive environment, as well as a downturn in the financing markets.
"I continue to believe in the long-term prospects of EMMIS," SMULYAN said in the letter. He added, "I look forward to continuing to work with our phenomenal group of employees to build value in the Company's portfolio."