Radio One Agrees to Acquire the Intellectual Property of WMOJ-FM in Cincinnati; Move Will Enhance Company's New Station Launch
WASHINGTON--(BUSINESS WIRE)--Sept. 14, 2006--Radio One, Inc. ("Radio One" or the "Company") (NASDAQ: ROIAK and ROIA) announced today that it has agreed to acquire the intellectual property of radio station WMOJ-FM ("MOJO"), located in Cincinnati, Ohio, from Susquehanna Radio Corp., for $5.0 million in cash. WMOJ-FM is currently broadcasting a "Jammin' Oldies" urban format. The Company expects to transfer this intellectual property to radio station WIFE-FM, which it agreed to acquire in March 2006. The acquisition of WIFE-FM is expected to close within the next week, at which time the call letters of the acquired station will be changed to WMOJ-FM.
Commenting on the acquisition, Radio One President and Chief Executive Officer Alfred C. Liggins, III stated, "This acquisition is a fantastic strategic move for us. First, it enables us to hit the ground running with our new Cincinnati station. Second, it should provide us with a rapid revenue and cash flow ramp for this new station. Finally, this acquisition further solidifies our urban competitive position in the Cincinnati market."
Radio One, Inc. (www.radio-one.com) is the nation's seventh largest radio broadcasting company (based on 2005 net broadcast revenue) and the largest radio broadcasting company that primarily targets African-American and urban listeners. Pro forma for announced acquisitions, Radio One owns and/or operates 71 radio stations located in 22 urban markets in the United States and reaches approximately 14 million listeners every week. Additionally, Radio One owns 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. Radio One also operates the only nationwide African-American news/talk network on free radio and programs "XM 169 The POWER," an African-American news/talk channel, 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.
CONTACT: Radio One, Inc.
Scott R. Royster,
SOURCE: Radio One, Inc.