If it was 90 million at 2 bucks a share is it worth 45 million now?
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How much is Emmis worth now?
- Thread starter ChiefEngineer
- Start date
The company's worth is $46 million according to my stockbroker.
If it goes down to 25 cents again that makes it worth11.5 million? I might buy if it goes that low, again. 10 thousand shares at $2500.
Then if Jeff offered to buy it at $2 a share it would be worth $20,000. It also might go bankrupt. Depends on lenders and how much availanle credit is left given the devaluation of the Smu Bucks.
Then if Jeff offered to buy it at $2 a share it would be worth $20,000. It also might go bankrupt. Depends on lenders and how much availanle credit is left given the devaluation of the Smu Bucks.
L
long-time-first-time
Guest
The problem is the crushing $400 million debt. New York, Chicago and Los Angeles are all under performing. More draconian budget cuts will only hurt the product more. They'll have to find ways to increase revenue.
The debt service is a huge problem - I also heard from the investment community that he's just running out of cash. Debt not serviced by sufficient revenue has to be covered by cash reserves, till the cash is gone.
This company will either need to spin off a couple major market properties [which, even in a depressed market, will sell closer to market value individually than what he can get for the whole thing right now in a stock transaction], or like Regent, Citadel, and MANY others before him, drive the entire thing into bankruptcy re-organization [and hope he has better luck renegotiating debt holders into equity than he did trying to go private].
Seriously, how embarrassing has it been the past month - almost daily announcements that meeting after shareholder meeting was cancelled, to be rescheduled, to be cancelled, to be.... all in the public eye, unsuccessfully trying to buy his company back private. Talk about driving new investment away, and how apparent it's desperation time there.
This company will either need to spin off a couple major market properties [which, even in a depressed market, will sell closer to market value individually than what he can get for the whole thing right now in a stock transaction], or like Regent, Citadel, and MANY others before him, drive the entire thing into bankruptcy re-organization [and hope he has better luck renegotiating debt holders into equity than he did trying to go private].
Seriously, how embarrassing has it been the past month - almost daily announcements that meeting after shareholder meeting was cancelled, to be rescheduled, to be cancelled, to be.... all in the public eye, unsuccessfully trying to buy his company back private. Talk about driving new investment away, and how apparent it's desperation time there.
If his investors didn't want to sell out to him, imagine how angry they're going to be if he goes bankrupt. Hoo boy. Personally I would have taken the money. They really think the stock is going to rise? Who are they kidding?
Look: CBS has done the most of any radio company in the last two years to increase profitability, invest in content, and build new products around the internet, and their stock is still trading at half of what it was before the crash. Two things investors don't like: traditional media companies and debt. It's a no-win solution. That's why Jeff was trying to go private.
Broadcast companies, if judged by their market capitalization, are incredibly under-valued. Most of them own real estate and other properties that would make their actual value greater than their stock value. If you add up all the physical equipment at the Emmis studios, it's worth more than the stock. But none of that matters. It's all about image when you play the market, and the image for traditional media is very bad. And I mean ALL traditional media. NBC is dragging down the value of GE stock. They can't wait to sell.
Look: CBS has done the most of any radio company in the last two years to increase profitability, invest in content, and build new products around the internet, and their stock is still trading at half of what it was before the crash. Two things investors don't like: traditional media companies and debt. It's a no-win solution. That's why Jeff was trying to go private.
Broadcast companies, if judged by their market capitalization, are incredibly under-valued. Most of them own real estate and other properties that would make their actual value greater than their stock value. If you add up all the physical equipment at the Emmis studios, it's worth more than the stock. But none of that matters. It's all about image when you play the market, and the image for traditional media is very bad. And I mean ALL traditional media. NBC is dragging down the value of GE stock. They can't wait to sell.
The problem with taking the money is employees current or past that invested $500k in stock worth $20,000. They are not able to retire. Taking the low amount is close to a total loss.
This on stocks that have never paid dividends. Wait, was there a one time dividend payment??
Jeff should know that his offer is a slap in the face to people who bought trusting in him. This is the Marcus Schrenker aspect of Emmis Stock.
High hopes and promises now have broken promises and a bleak outlook. Bankruptcy filing is probably near. Even with the many positives of the company and the promising past, this is the development that will leave a mark on the place forever.
Even here in Indy the only property doing well is WIBC, at the cost of putting programming on 1070 that is a shell of the past.
The physical property without cash flow exceeds the stock offering. 1070's 100 acres might bail things out if houses were being sold. (And offering no mineral rights (ground wires cannot be disturbed), free amber night lights, free florescent lighting in your home, and free background music on telephones)
If I had the answers I would offer them. Last rites. Restructuring into a new company or bankruptcy are the only things I see. At least this would mark the end of one chapter and the start of another.
This on stocks that have never paid dividends. Wait, was there a one time dividend payment??
Jeff should know that his offer is a slap in the face to people who bought trusting in him. This is the Marcus Schrenker aspect of Emmis Stock.
High hopes and promises now have broken promises and a bleak outlook. Bankruptcy filing is probably near. Even with the many positives of the company and the promising past, this is the development that will leave a mark on the place forever.
Even here in Indy the only property doing well is WIBC, at the cost of putting programming on 1070 that is a shell of the past.
The physical property without cash flow exceeds the stock offering. 1070's 100 acres might bail things out if houses were being sold. (And offering no mineral rights (ground wires cannot be disturbed), free amber night lights, free florescent lighting in your home, and free background music on telephones)
If I had the answers I would offer them. Last rites. Restructuring into a new company or bankruptcy are the only things I see. At least this would mark the end of one chapter and the start of another.
ChiefEngineer said:
If Emmis was the only company that where stock lost value, then there'd be a trust factor. But it's not even all of radio. It's all of traditional media, including newspapers and TV. The entire industry has lost a huge amount of value, and all the government can do is feed the fire by making spectrum available for free wifi. This isn't an Emmis problem, or even a radio problem.
Pardon me, but that would be free ball games on telephones.ChiefEngineer said:
This whole thing makes puts Emmis in a bad light. Just a few years ago this company was making news for being one of the best places to work. Now all the news is about fights with investors and financiers.
Going public 20 years ago now must now seem like a mistake, although it likely made sense at the time. Selling the Chicago stations would seem like a good plan, IF there are any motivated buyers right now.
Going public 20 years ago now must now seem like a mistake, although it likely made sense at the time. Selling the Chicago stations would seem like a good plan, IF there are any motivated buyers right now.
Cumulus is in a very good position to buy Emmis; Recently raised a lot of dry power to make acquisitions. They also have absorbed the Susquehanna properties in major and large markets, but are well under ceiling of numbers of properties they can own in those markets [except maybe Indy, but they would have a couple non-performers here they could spin off]. Learning the markets running the Susquehanna group has them positioned to add mass with an Emmis group overlay.
They also are in the magazine publishing business; just purchased a group, but didn't spend anywhere near all the cash they raised for M&A. Emmis' publishing side would fit right into the Cumulus portfolio.
Geeze, I think I should get a broker fee for matchmaking this one! ;D [Except Jeff is too stubborn to sell]
ps - one final small irony here - Cumulus forces Charlie Morgan and his management team out of Shadeland several years back. Charlie and his crew make their way to the Circle on Emmis. Cumulus buys Emmis. Charlie and crew are ousted again. Ouch!
They also are in the magazine publishing business; just purchased a group, but didn't spend anywhere near all the cash they raised for M&A. Emmis' publishing side would fit right into the Cumulus portfolio.
Geeze, I think I should get a broker fee for matchmaking this one! ;D [Except Jeff is too stubborn to sell]
ps - one final small irony here - Cumulus forces Charlie Morgan and his management team out of Shadeland several years back. Charlie and his crew make their way to the Circle on Emmis. Cumulus buys Emmis. Charlie and crew are ousted again. Ouch!
Wonder if Jeff is having buyers remorse on his support for Obama now that "the worst economic crisis since the great depression" looks like it may be here for a while?TheBigA said:
undertheradar said:
This is the same Cumulus that is shutting down stations because they can't, or won't, operate them?
L
long-time-first-time
Guest
undertheradar said:Cumulus is in a very good position to buy Emmis; Recently raised a lot of dry power to make acquisitions. They also have absorbed the Susquehanna properties in major and large markets, but are well under ceiling of numbers of properties they can own in those markets [except maybe Indy, but they would have a couple non-performers here they could spin off]. Learning the markets running the Susquehanna group has them positioned to add mass with an Emmis group overlay.
They also are in the magazine publishing business; just purchased a group, but didn't spend anywhere near all the cash they raised for M&A. Emmis' publishing side would fit right into the Cumulus portfolio.
Geeze, I think I should get a broker fee for matchmaking this one! ;D [Except Jeff is too stubborn to sell]
ps - one final small irony here - Cumulus forces Charlie Morgan and his management team out of Shadeland several years back. Charlie and his crew make their way to the Circle on Emmis. Cumulus buys Emmis. Charlie and crew are ousted again. Ouch!
I hinted at this possibility in another thread. It would be a scenario of unspeakable horror.
Bengalsfan said:
Yes -- Cumulus doesn't like stand-alones and the plan since the takeover of Susquehanna has been to sell off Louisville. Unfortunately, the economy has not cooperated.
UnderTheRadar -- that is exactly what will happen -- no love lost on either side of that equation.
Jeff would have been swallowed by anyone in town if he had not had the Wall Street money. His dad had a single AM station WNTS.
Despite following the bad side of what Emmis has done to it's employees remember Jeff is a radio guy fom the start. No doubt his support of Obamanation, Planned Parenthood, and other special interest issues has placed him in a poor light with many. While you may disagre with his views he is not wishy washy on them.
I would like to see the story turn out other than how the book has been so far.
Despite following the bad side of what Emmis has done to it's employees remember Jeff is a radio guy fom the start. No doubt his support of Obamanation, Planned Parenthood, and other special interest issues has placed him in a poor light with many. While you may disagre with his views he is not wishy washy on them.
I would like to see the story turn out other than how the book has been so far.
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