Emmis' Sale Of Its Share Of Austin Cluster To Partner Sinclair Telecable Earns Ownership Cap Waiver From FCC

Waiver

EMMIS COMMUNICATIONS CORP's sale of its 50.1% controlling interest in its AUSTIN cluster to its partner SINCLAIR TELECABLE, INC. for $39.3 million has earned a waiver from the FCC of ownership caps in the market to allow SINCLAIR to retain all six licenses without the need to divest one of the stations. The waiver request was unopposed and was based on the idea that the deal was more of a corporate restructuring than a sale and that forcing a divestiture would be a hardship and would result in a "fire sale" because of the forced nature of the spinoff. The Commission agreed that the situation, with nearly equal partners, a long history, and a uniquely diverse market, merited a waiver.

The buyer, owned by BOB and DAVID SINCLAIR, is the company that owns radio cluster in NORFOLK and SONOMA COUNTY and not associated with SINCLAIR BROADCASTING GROUP, the TV group that owns radio stations in SEATTLE. The AUSTIN stations involved in the deal, co-owned by EMMIS and SINCLAIR since 2002, include News-Talk KLBJ-A-K259AJ, Classic Rock KLBJ-F, AC KGSR (STAR 93.3), Adult Hits KBPA (103.5 BOB-FM), Alternative KROX (101X),Triple A KGSR-HD2-K246BD (AUSTIN CITY LIMITS RADIO), Regional Mexican KLZT (LA ZETA), and Spanish Hits KLZT-HD2-K274AX (LATINO 102.7). SINCLAIR TELECABLE has previously indicated that it will rebrand the cluster as WATERLOO MEDIA.

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