NEW YORK ( TheStreet) -- Emmis Communication ( EMMS) shares took a nose dive yesterday after the company announced that the tender offer by Jeffrey Smulyan, chairman, CEO and president of Emmis, and JS Acquisition had been terminated.

Smulyan had offered to purchase all of Emmis' outstanding shares for $2.40 per share but the exchange deadline had been extended several times over the past month and finally expired. The CEO was working with hedge fund Alden Global Capital to finance the deal before pulling out.

None of the preferred shares were bought in the exchange offer, and the company will return all shares of preferred stock to their original holders. The stock plummeted following the expiration of the exchange and dropped to as low as $1.17.

Emmis shares are currently down almost 11% to 1.09.

-- Written by Theresa McCabe in Boston.

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