NEW YORK — Investors immediately responded to the wide distribution of an announcement from Indianapolis involving two of the biggest radio stations serving this metropolis, sending Emmis Communications shares soaring to their highest values in more than four years in Monday’s trading on Nasdaq.
At 10:35am Eastern, RBR+TVBR distributed a Breaking News e-mail bulletin sharing the news that Emmis had signed an agreement to form a new publicly traded company on Nasdaq, to be called Mediaco Holding, via a 24%/76% partnership with majority investor Standard General, led by hedge fund leader Soo Kim.
The transaction will give Emmis $96.5 million in cash while putting Smulyan at the helm of Mediaco. The deal also calls for Emmis to continue operating the stations, Urban WBLS-FM and Rhythmic WQHT-FM “Hot 97,” much as it does today.
Within 10 minutes of the Breaking News e-mail’s release, EMMS shot up from $5.25 to $6.59 per share by 11:02am.
Trading volume increased, while the price of Emmis shares moderated across the trading day. At the Closing Bell, Emmis was up 92 cents to $5.67.
With that final bell price, Emmis will begin trading on Tuesday at its highest price since mid-March 2015.
Volume was at 847,702 shares; average trading for Emmis is 11,885 shares.
Its Q1 2020 earnings report is expected within the next two weeks.