Radio One, Inc. Completes Sale of WKAF-FM in Boston
WASHINGTON--(BUSINESS WIRE)--Jan. 3, 2007--Radio One, Inc. ("Radio One" or the "Company") (NASDAQ: ROIAK and ROIA) announced today that, effective December 29, 2006, it completed the sale of the assets of radio station WKAF-FM (formerly WILD-FM), located in the Boston, Massachusetts metropolitan area, for approximately $30.0 million in cash, to Entercom Communications Corp.
The Company acquired WKAF-FM in October 1999 for approximately $10.0 million and will utilize its existing NOLs to shelter most, if not all, taxes associated with the capital gain that has been generated by the sale. On December 29, 2006, the Company used most of the net proceeds generated from the sale to reduce borrowings under its bank credit facility.
Commenting on this transaction, Radio One's Chief Executive Officer and President, Alfred C. Liggins, III, stated, "This sale represents a very good start to our asset disposition process. While Boston is a wonderful radio market, it was not of great strategic importance to us. We have used the capital generated from this sale to reduce our leverage and we continue to look to rationalize our asset base."
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. Radio One owns and/or operates 70 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.
CONTACT: Radio One, Inc.
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SOURCE: Radio One, Inc.