Radio One Agrees to Sell WILD-FM In Boston
WASHINGTON--(BUSINESS WIRE)--Aug. 21, 2006--Radio One, Inc. ("Radio One" or the "Company") (NASDAQ:ROIAK and ROIA) announced today that it has agreed to sell the assets of radio station WILD-FM, located in the Boston, Massachusetts metropolitan area, for approximately $30.0 million in cash, to Entercom Communications Corporation. Radio One expects to complete the disposition during the second half of 2006.
The Company acquired WILD-FM in October, 1999 for approximately $10.0 million and expects to utilize its existing NOLs to shelter most, if not all, taxes associated with the capital gain that will be generated by the sale. For the most recent trailing 12-month period, WILD-FM had approximately $2.3 million of net revenue and operated at an approximately break-even level, after taking into account direct expenses and allocated expenses incurred in the Boston market for the Company's two radio stations.
Commenting on this transaction, Radio One President and Chief Executive Officer 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 is not of great strategic importance to us. We will use the capital generated from this sale to reduce our leverage while 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. 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.
CONTACT: Radio One, Inc.
Scott R. Royster,
SOURCE: Radio One, Inc.