• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Radio One Agrees to Acquire WRDA-FM; Station Located in the St. Louis Market

Posted on: Monday, 26 September 2005, 09:01 CDT

Radio One, Inc. ("Radio One" or the "Company") (NASDAQ: ROIAK and ROIA) announced today that it has agreed to acquire the assets of radio station WRDA-FM, located in the St. Louis, Missouri market for approximately $20.0 million in cash. The Company expects to begin operating the station under a LMA commencing October 1, 2005. Following the completion of the acquisition, likely during the fourth quarter of 2005, the Company expects to change the call sign and format of the station. The Company will announce the specifics of these changes at a later date.

Commenting on the acquisition, Radio One president and Chief Executive Officer Alfred C. Liggins, III stated, "This acquisition is yet another example of our prudent approach to acquiring radio stations in an uncertain environment for the industry. Through this acquisition we will complement our current single station in St. Louis, thus greatly strengthening our competitive position in this large urban market."

Radio One, Inc. (www.radio-one.com) is the nation's seventh largest radio broadcasting company (based on 2004 net broadcast revenue) and the largest radio broadcasting company that primarily targets African-American and urban listeners. Pro forma for this acquisition, Radio One owns and/or operates 70 radio stations located in 22 urban markets in the United States and reaches more than 13 million listeners every week. Radio One also owns approximately 36% of TV One, LLC (www.tvoneonline.com), a cable/satellite network programming primarily to African-Americans, which is a joint venture with Comcast Corporation and DIRECTV. Additionally, Radio One owns 51% of the common stock of Reach Media, Inc. (www.blackamericaweb.com), owner of the Tom Joyner Morning Show and other businesses associated with Tom Joyner, a leading urban media personality, and programs "XM 169 The POWER" on XM Satellite Radio.

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Because these statements apply to future events, they are subject to risks and uncertainties that could cause actual results to differ materially, including the absence of a combined operating history with an acquired company or radio station and the potential inability to integrate acquired businesses, need for additional financing, high degree of leverage, seasonal nature of the business, granting of rights to acquire certain portions of the acquired company's or radio station's operations, market ratings, variable economic conditions and consumer tastes, as well as restrictions imposed by existing debt and future payment obligations. Important factors that could cause actual results to differ materially are described in Radio One's reports on Forms 10-K and 10-Q and other filings with the Securities and Exchange Commission.

Source: Business Wire

More News in this Category