| Radio One‚ Inc. | Memo To: Mr. Alfred Liggins III From: Team 5 Date: [ November 22‚ 2011 ] Re: Clear Channel Communications Inc. acquisitions Mr. Liggins The recent merger between Clear Channel Communications Inc. and AMFM has presented a rare opportunity for Radio One‚ Inc. The proposed divestiture of Clear Channel will be the largest in the history of the industry. Radio One‚ Inc. can acquire 12 established urban stations in the top 50 markets‚ which rarely become available. Market
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Radio one analsys 1) Why does Radio One want to acquire the 12 urban stations from Clear Channel Communications in the top 50 markets along with nine stations in Charlotte‚ NC‚ Augusta‚ GA‚ and Indianapolis‚ IN? What benefits and risks? The Reasons for acquiring the 12 urban stations from Clear Channel could be the following: - Bigger African American Base: It would draw more African-American listeners than any other radio broadcaster and cover more African-American households than any
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Radio One INC. This case involves an expansion of Radio One Inc. The company is evaluating several stations that are currently available due to a divesture that Clear Channel was required to complete. Radio One’s strategy is to be the number one urban- oriented music‚ entertainment‚ and information to African-American in as many major markets possible. With this opportunity Radio One can acquire an additional 12 stations in areas they have not been able to search before. The results of the expansion
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Radio One‚ Incorporated In general Assume a corporate tax rate of 34%‚ and a market risk premium of 7.2%. Data in exhibit 9 are in $1‚000. Show and explain all your calculations‚ i.e. the reader/grader must be able to follow your reasoning and be able to understand all your calculations without using time to reconstruct your numbers. Make additional assumptions if necessary‚ but make them explicitly. Good luck. Questions 1. Why does Radio One want to acquire the 12 urban stations
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Radio One Inc. is a company that was founded in 1980 by Catherine Hughes who had learned the radio business while teaching at Howard University. Catherine and her husband purchased WOL-AM in Washington‚ D.C. for just under one million dollars. Hughes changed the format from R&B music and public affairs to talk radio. To cut back on expenses the Hughes became radio personalities. Expansion for Radio One began in 1987 when the Hughes’ purchased WMMJ-FM in Washington for about $7.5 million and
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Radio One Radio One Inc. was founded by Catherine Hughes in 1980. Radio One was the largest radio group targeted to African Americans. They had remarkable success by purchasing underperforming stations and went from only 7 stations in 95 to 28 in 99. In 1980‚ Hughes and her husband raised enough money to purchase WOL-AM in Washington‚ D.C. for just under one million dollars. This increased their credibility. Radio One’s strategy was to provide urban-oriented entertainment‚ with information easily
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management Radio One Case This case involves whether Radio One should purchase the 21 radio stations from Clear Channel‚ Davis and IBL LLC and the impact of the acquisition to the investors and on the market. Examining the stations it fits with Radio One’s Corporate Strategy and they have the ability to bid first on a group of stations that would double Radio One’s size. Also this purchase would create national coverage for Radio One. First we must look at the Return on Asset of Radio One. With
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ANÁLISIS DEL CASO 3 4.1. ¿Porqué Radio One desea adquirir las 12 estaciones de Clear Channel Commmunications que están rankeadas entre las 50 mejores además de las nueve estaciones en Charlotte‚ NC‚ Augusta‚ GA‚ e Indianápolis‚ ID? ¿Cuáles son los beneficios y riesgos? 3 4.2. ¿Qué precio deberá ofrecer Radio One basado en un análisis de flujo de caja descontado? 3 ¿Son razonables las proyecciones del flujo de caja? 3 4.3. ¿Qué precio debería ofrecer Radio One basado en un análisis de múltiplos
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Why does Radio One want to acquire the 12 urban stations from Clear Channel Communications in the top 50 markets along with the nine stations in Charlotte‚ NC‚ Augusta‚ GA‚ and Indianapolis‚ IN? What are the benefits and risks? After the Telecommunication act in 1996 significant consolidation occurred in the Radio Industry‚ thereafter Radio companies were able to obtain cost savings by acquiring multiple stations in one area and reaching economies of scale. The nation’s two biggest radio company
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Part 1: In 2000‚ Radio One‚ Inc. sees strategic opportunity in the opportunity to grow through acquisition‚ following a Clear Channel divestiture mandated by the FCC. The divestiture poses the opportunity to Radio One to acquire twelve (12) urban stations that are in the top 50 African American markets in the U.S. Even though the company saw tremendous growth through acquisition over the prior decade‚ this unique situation has the potential to generate significant shareholder value and further
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