Radio One, Inc. - Finance 6000 Case Study.

Introduction In 1980 Catherine Hughes and her husband raised money to corrupt a receiving set station in uppercase, D.C., for just under $1 million. They started the radio station by changing it from a R& angstrom;B station and public personal matters to talk radio. initiatory off as radio hosts and becoming personalities throughout the twelvemonths, the Hugheses acquired more and more post. In 1987 they purchase WMMJ-FM for $7.5 million, in 1992 and 1993 they purchased four stations in Baltimore, Maryland for $6.4 million and in 1995 they bought WKYS-FM in Washington for a record high $34 million. This was the largest acquisition in the keep companys history at that fourth dimension, which as well presented an exciting prospect to them, because the station had been no 1 in the market, but had go to No. 13 by the while of the purchase. Concentrating mostly on the African-American market, alike onto the South East of the United States, remaining radio manslayer On e with a market that at first did not find many announce agencies that wanted to institutionalise and denote on these radio stations. Radio Ones st postgy was to provide urban-oriented music, merriment and information primarily African-American audience in as many major markets as possible.

Alfred Liggins III, the CEO at the time of the merger talks and Scott Royster, the CFO of Radio One, continued to flip ones lid their radio station throughout the Eastern US, even forest ending further north, like Detroit, MI. In May 1999, Liggins lead the company to its IPO and by the end of their fiscal year Radio One, Inc. recorded a $81.7 m illion in boodle revenue, defined as reven! ue from local and national advertising little agency commissions. This was equivalent to an average growth rate of 51% over three years. In 1992 the Federal communications Commission (FCC) relaxed its base existing regulations... If you want to get a full essay, bless it on our website: BestEssayCheap.com

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