Super Bowl Update

Indianapolis-based Emmis Communications has released its results for its third fiscal quarter which ended November 30. 

Sprint has announced a preliminary arrangement with representatives of the American radio industry that will enable Sprint customers to listen to local FM radio stations from a broad spectrum of radio companies on select Android and Windows smartphones during the next three years. FM radio could be delivered through the NextRadio tuner application or other radio apps or services.

This announcement marks the first time a U.S. wireless carrier would offer the ability to access local FM radio on a broad array of its devices. Consumers today can listen to radio on smartphones by streaming over the Internet, but as part of this plan, Sprint customers could use their smartphones and the NextRadio tuner to listen to local FM radio stations.

With the NextRadio tuner – expected to be available later this year – Sprint customers would enjoy a wide range of interactive listener features not available today and would have the availability of local FM radio at their fingertips to access all forms of broadcast information.

"We look forward to bringing Sprint customers another entertainment choice through NextRadio," said Fared Adib, Sprint SVP of product development and operations. "This new, easy-to-use service adds another dimension to the versatility of our wide array of smartphones and will deliver a new avenue for thousands of local radio stations across the country to reach our customers."

Jeff Smulyan, CEO of Indianapolis-based Emmis Communications, who acted as principal negotiator for the radio industry, added, "Today is a remarkable day for our industry. I am gratified by the unity I have seen in our industry. It seems every broadcaster I know has supported this effort, and I am grateful to the tireless efforts of industry leaders, from the largest companies to the owners of the smallest stations … all of whom have helped us reach this agreement. While there is much work to be done, today is a critical first step."

Recently, both WTHI-TV 10 and WTHI-Hi99 FM (99.9 FM) moved to new homes ― in different locations ― in downtown Terre Haute, and the stations' old home at 918 Ohio Street is now in the process of being torn down.

WTHI-TV has a gallery of photos of the teardown in progress, and you can see the pictures by clicking here.

The 918 Ohio Street building was built in 1906 and was originally a garment factory.  It was renovated and repurposed for WTHI's TV and radio operations in 1954.  Emmis Communications moved WTHI-FM and WWVR-FM to a newly-constructed building at 925 Wabash Avenue back in August, and WTHI-TV moved to its own brand-new building at 800 Ohio Street in late October.

When demolition is completed, it's expected that the site will become a parking lot for the new 925 Wabash Avenue building which is located immediately behind 918 Ohio.

Indianapolis-based Emmis Communications, which owns and/or operates WTHI-99.9 FM, WWVR-105.5 FM, WFNB-92.7 FM and WFNF-1130 AM in the Terre Haute market, Network Indiana and several radio stations in Indianapolis, released its second quarter earnings report on Thursday morning.

For the quarter, Emmis' net revenue was up 1%, not counting the company's interest in the Merlin radio stations.  With those stations included, net revenue was down 6%.

Indianapolis-based Emmis Communications has announced the sale of its Emmis Interactive division to Marketron.

Terms of the deal were not disclosed, but the move will allow Emmis to focus on Tagstation, a new product for smartphones with FM tuners built in.

"We developed some great products at Emmis Interactive and we are very excited for Marketron and our team moving over to Marketron to take the platform to the next level," said Jeff Smulyan, President and CEO of Emmis Communications.

Marketron will retain Emmis Interactive's existing management team.

Emmis is largely known for its radio stations.  The company owns and operates four radio stations in the Terre Haute market - country WTHI-99.9 FM, classic rock WWVR-105.5 FM, variety WSDM-92.7 FM and sports WFNF-1130 AM - along with other radio stations in Indianapolis, St. Louis and elsewhere.

Emmis Communications has rebranded and separated the programming of its two newly-acquired Terre Haute-area radio stations.

WSDM-92.7 FM, formerly broadcasting as a simulcast with sports WSDX-1130 AM, is now playing a variety hits format and is known as "92.7 Bob-FM."

WSDX will get new call letters - WFNF - and be known as "1130 The Fan," much in the way that WFNI-1070 AM in Indianapolis (the former WIBC, also owned by Emmis) is "1070 The Fan."  It will continue to air ESPN Radio programming, but a locally-produced afternoon show is in the works.

Emmis paid $335,000 to Crossroads Investments for the two stations, both of which are licensed to Brazil, Ind.  They now operate from Emmis Terre Haute's new headquarters on Wabash Avenue in downtown Terre Haute, alongside WTHI-99.9 FM and WWVR-105.5 FM.

Shareholders of Emmis Communications, the Indianapolis company which owns two (soon to be four) radio stations in the Terre Haute market (see below), voted Tuesday to eliminate $34 million in unpaid dividends owed to the company's preferred shareholders.

The vote came following Friday's decision by U.S. District Court Judge Sarah Evans Barker to throw out the preferred shareholders' request for an injunction against Emmis.

Corre Opportunities Fund and other shareholders say that the elimination of the unpaid dividends sets the stage for Emmis' chairman, Jeff Smulyan, to take the company private.  Smulyan has repeatedly denied that he plans to do so.

UPDATE, 1:40 p.m. THURSDAY:  All Access reports that Emmis is paying $335,000 for the two stations.  That amount wasn't made public when the deal was announced Wednesday, but was revealed in the FCC filings.

PREVIOUSLY: The last of Crossroads Investments' radio stations in the Terre Haute market have found a buyer.

Indianapolis-based Emmis Communications, which owns WTHI-99.9 FM (HI-99) and WWVR-105.5 FM (105.5 The River), announced this morning that it's buying Crossroads' ESPN Radio-affiliated stations WSDX-1130 AM and WSDM-92.7 FM, which are both licensed to Brazil, Ind.

Financial terms of the deal were not disclosed.

Until the FCC approves the purchase, Emmis will operate both stations under a local marketing agreement beginning Sept. 1.

"We are excited to add the ESPN brand to the Emmis-Terre Haute cluster of stations," said James Conner, Emmis Vice President/Terre Haute General Manager. "We will continue to serve the listeners of Terre Haute, Brazil and the surrounding communities with quality programming and our continued commitment to community service."

Crossroads has been slowly divesting itself of its radio properties over the past few months.  The company sold what is now WDWQ-102.7 FM and WBOW-1300 AM to Wisconsin-based Midwest Communications (a sale which was approved by the FCC last week), and is in the process of selling Rockville, Ind. station WAXI-104.9 FM to Washington, Ind.-based DLC Media, which is owned by Indiana's Democratic 8th District Congressional candidate, Dave Crooks.

Read more here: http://www.heraldonline.com/2012/08/22/4206323/emmis-terre-haute-to-acquire-wsdm.html#storylink=cpy

Indianapolis-based Emmis Communications is awaiting the ruling of U.S. District Court Judge Sarah Evans Barker in a suit filed by the company's preferred shareholders to block a vote on eliminating their dividends.

Those dividends are worth millions of dollars, and the shareholders have accused the company's CEO, Jeff Smulyan, of trying to take Emmis private, as he tried and failed to do twice before, in 2006 and 2010.  Smulyan told the court that is simply not the case. “I’m worn out from two years ago,” the chairman and chief executive officer said. “I just don’t want to do it. I can’t foresee a situation in which that would change.”

One of the intentions of the plaintiffs was to stop a scheduled Aug. 14 shareholder meeting where, they claim, the dividend wipeout would be approved.  They've succeeded in postponing the meeting, as Smulyan has now pushed it back until after Judge Barker rules.

Emmis is trying to reposition and refashion its business, which includes a number of radio stations in Indianapolis and Terre Haute (see below), and as part of that process, the company is also trying to cut its debt load.

Judge Barker said she would rule by Aug. 31; she closed Wednesday's proceeding by suggesting the parties work together to come up with a plan that would compensate the shareholders fairly while also allowing the company to get its financial house in order.

There's no word on whether talks between the two sides have been scheduled.