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‘Texas Monthly’ Has a New Owner

Paul Hobby, who runs the Houston-based private equity firm Genesis Park, takes the reins of the venerable publication.

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Nearly two months ago, Emmis Communications, the Indianapolis-based company that owns Texas Monthly, announced that it was putting the title up for sale. Today we learned that the new owner is a Texan whose name will be familiar to our readers (and anyone who has flown out of Houston). Paul Hobby, whose grandfather was once the state’s governor and whose father was once the lieutenant governor, has purchased the magazine through his firm, Genesis Park.

For more information, read the full release below:

Emmis Communications Corporation (Nasdaq: EMMS) today 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, excludingIndianapolis 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.

Emmis Communications – Great Media, Great People, Great Service®
Emmis Communications Corporation is a diversified media company, principally focused on radio broadcasting. Emmis owns 19 FM and 4 AM radio stations in New York, Los Angeles, St. Louis, Austin (Emmis has a 50.1% controlling interest in Emmis’ radio stations located there), Indianapolis and Terre Haute, IN. Emmis also developed and licenses TagStation®, a cloud-based software platform that allows a broadcaster to manage album art, metadata and enhanced advertising on its various broadcasts, and developed NextRadio®, a smartphone application that marries over-the-air FM radio broadcasts with visual and interactive features on smartphones.

Genesis Park
Genesis Park is a Houston-based private equity firm comprised of professionals with operating expertise that is actively applied within its lower middle market portfolio companies. Genesis Park provides experience, time and guidance to help clients¹ diversify into new markets, build stronger operating platforms, develop high performing teams and capitalize on opportunities.Genesis Park focuses on companies in the Southern U.S. within the business services, processing/manufacturing, information/technology and communications sectors in order to leverage a deep network and industry relationships. Genesis Park often works with corporate parents who need to divest orphaned divisions, founders that require more capital to achieve their vision, entrepreneurs and family owned businesses who need expertise to break through to the next level and clients with other special situations. For more information, visit genesis-park.com

Note: Certain statements included in this press release which are not statements of historical fact, including but not limited to those identified with the words “expect,” “will” or “look” are intended to be, and are, by this Note, identified as “forward-looking statements,” as defined in the Securities and Exchange Act of 1934, as amended. Such statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future result, performance or achievement expressed or implied by such forward-looking statement.

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  • John Olthoff

    Is he going to stop the liberal BS, this rag is known for. I hope he will fall in line, with 98% of Texas

    • wessexmom

      The answer to that silly question is NO. His father and grandfather were two of the most notable DEMOCRATS in the history of TX politics. And his family owned and operated THE most liberal paper in Houston, The Houston Post.

      • IM1RU12

        And do I ever miss the Houston Post!!

  • Sue Malnory

    I hope they change the font to something more easily read by “seniors”!!

    • Jana Mae

      I have been thinking that same thing! It will boost sales, I am certain of it.

    • Virginia Parramore Thinnes

      I have subscribed to TM for as long as it had been in print! Please keep that highly intelligent “Jewish lawyer”, 98% of Texas is not conservative (thank heaven) and yes, please do enlarge the font. I am a 5th generation Texan & an independent woman that die with my rhinestone flip flops on!

  • Madrigalian

    He can start by firing half of the writers and editorial staff and replacing them with some (any) conservative writers and editors who will reflect and respect different points of view and restore TM to something actually worth reading.

    • wessexmom

      Restore? TX Monthly was NEVER conservative in its tone. It’s always been moderate.

      • Charlie Primero

        That is true. My mother has had a subscription to Texas Monthly since 1979. The magazine never was anything Texans would call “conservative”.

        Still, a Texas banker will surely be somewhat more conservative than a Jewish lawyer from Indiana like Jeff Smulyan.

    • IM1RU12

      No. Who wants to read anything conservative? Boring!

  • Charlie Primero

    This is good. Texas Monthly should be owned by a Texan.

  • Nan Kan, TX

    YAY! Welcome back Hobby family.

  • BriteBlonde1

    The Hobbys owned TV stations as well…let them alone but were rather tight with the operating cash.

  • Whosyourdaddy

    Well I hope they put a bunch more advertisements in the magazine. There are hardly any in there now! Too many articles in the way of their fine advertising.

  • OM

    Hello, from someone who lived near and loves arriving at Hobby airport. Texas just got more texan – yeehaw!

  • Walt Longmire

    It all sounds good to me, restoring Texas ownership to the “Texas Monthly,” the best reading I do during the month. I would like to see a more balanced tone to the articles, as the Monthly is quite liberal and biased for the homosexual movement. I have a deep affection for West Texas, where God sent me to discover Him through the faithful witness of a young Texan from Amarrilo. The area in Big Spring, Midland-Odessa, San Angelo is like a sprititual home to me. My family travels back there every chance we get. Were I rich, I would buy a home there for our visits, as West Texas hotels/motels are not exactly the best place to stay long-term.

    I worry a iittle bit about the rich guy whose main concern is money and profit, and the Monthly might disappear or be sold off again after all the profit has been sucked out of the Monthly. That is the business model of private equity managers/owners, who have little or no spiritual connection to the organization.

    But here is hoping for a new and better day for the Monthly. The eyes of Texas are upon you, sir.

  • perks

    tm is one of my favorite monthlys for years now. I just hope it doesnt get too far out in left field, as i have watched it change considerably.