Radio One, Inc. (NASDAQ:ROIAK and ROIA) has formally announced that it has entered into an Asset Purchase Agreement to sell KRBV – FM (V100), The Beat, its radio station in Los Angeles to Bonneville International, the Salt Lake City based broadcast and communications company. The transaction price is approximately $137.5 million. The transaction is expected to close during the second quarter of 2008.
Alfred C. Liggins III, Radio Ones CEO and President stated, This is an attractive transaction for Radio One, as it frees-up capital and management resources which can be re-deployed to execute our long-term strategy. We expect to use the proceeds from this transaction to reduce our leverage, accelerate our internet strategy and re-commence a limited buy-back of our securities. The company also announced that its Board of Directors has authorized a stock repurchase program for up to $150 million.
Radio One, Inc. (www.radio-one.com) is one of the nations largest radio broadcasting companies and the largest radio broadcasting company that primarily targets African-American and urban listeners. Pro forma for recently announced transactions, Radio One owns and/or operates 53 radio stations located in 16 urban markets in the United States. Additionally, Radio One owns Magazine One, Inc. (d/b/a Giant Magazine) (www.giantmag.com), interests in TV One, LLC (www.tvoneonline.com), a cable/satellite network programming primarily to African-Americans and Reach Media, Inc. (www.blackamericaweb.com), owner of the Tom Joyner Morning Show and other businesses associated with Tom Joyner.
Bruce Reese, president and chief executive of Bonneville said that the company was not acquiring the personnel or the format. Their interest is focused on the antenna, transmitter, studio and operating equipment.
V100 (100.3 FM) is the R&B home of many popular radio personalities including Cliff Winston, Michael Baisden, Daniella Masterson, Eric Rico Reed, Bo Taylor and more, delivering a mix of music and hot topics.