Emmis Communications Corporation (Nasdaq: EMMS) announced the signing of an agreement to sell the assets of Texas Monthly to an affiliate of Genesis Park, LP, a partnership founded by Paul Hobby, for $25 million, subject to working capital adjustments.
The nationally recognized authority on life in the state of Texas, Texas Monthly has won 13 National Magazine Awards and has chronicled life in contemporary Texas since 1973.
Genesis Park is a regional private equity firm that has built successful communications and technology businesses in Texas for many years. Examples include CapRock Services, Alpheus Communications and Vivante GMP.
Paul Hobby, a Founding Partner of Genesis Park said: “We are honored to be the third steward of this beloved Texas brand. Our plan is to bring new ideas, strategic relationships and thoughtful investment that help to take this great story forward. We are also pleased to affiliate with Jack Martin in this endeavor given his long record of anticipating important trends in media and public communication.”
“Texas Monthly has been a member of the Emmis family for 18 years, so today is bittersweet,” said Jeff Smulyan, Chairman & CEO of Emmis. “We want to thank all of our employees for their dedication and hard work.
“This transaction allows us not only to de-lever our balance sheet, but puts TM in the capable hands of one of Texas’ great families, the Hobbys,” Smulyan concluded.
On August 18, the Company announced that it was exploring strategic alternatives for its publishing division, excluding Indianapolis Monthly magazine. The Company also announced it was exploring strategic alternatives for its Terre Haute radio stations and WLIB-AM in New York.
Emmis has owned Texas Monthly since 1998. The transaction is expected to close in early November.