The long-delayed plans of Emmis CEO Jeff Smulyan to buy back his public company collapsed yesterday. The company’s market capitalization fell this morning to about $42 million. Emmis owns radio stations, plus Texas Monthly, Los Angeles, Indianapolis, Atlanta, and Cincinnati magazines.
Mark Foster, chief investment officer for Kirr Marbach & Co. in Columbus, said Emmis’ future options are limited by a low stock price and heavy debt, which runs 13 times its earnings. “That’s high,” he said. “This is a business that doesn’t have a lot of wiggle room. They’re going to have to throttle back growth, generate cash and cut debt.”
Emmis bought Texas Monthly in 1998 for $37 million.
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