Emmis agrees to sell 9
of its 16 TV stations

INDIANAPOLIS » Emmis Communications Corp., which owns KHON-TV and KGMB-TV in Honolulu, said yesterday it will sell nine of its 16 television stations in transactions worth $681 million. The two local stations were not included in the deals but still are being shopped around.

In the largest of its transactions, Indianapolis-based Emmis is selling five stations to Providence, R.I.-based LIN TV Corp. for $260 million. They are: WTHI in Terre Haute, Ind.; WALA and WBPG in Mobile, Ala., and Pensacola, Fla.; WLUK in Green Bay, Wis., and KRQE in Albuquerque, N.M.

Emmis will sell three stations -- WFTX in Fort Myers, Fla.; KMTV in Omaha, Neb., and KGUN in Tucson, Ariz. -- to Milwaukee-based Journal Communications for $235 million.

Gray Television of Atlanta will buy WSAZ in Huntington/Charleston, W.Va., from Emmis for $186 million.

Emmis' stock price has gone up about 50 percent since hitting its year low of $15.29 in May, just before Emmis announced plans to sell the TV stations to lower its debt.

"We wanted to do what was right to get the best price for our shareholders, while providing our employees -- who have consistently been among the best operators in the industry -- with the best possible new owners," Emmis Chairman and CEO Jeff Smulyan said.

The station transactions are all subject to regulatory approval, but Emmis said the deals were expected to close by the end of the year.