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Radio One Selling all 5 Stations in Dayton (XM Deal)

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XM614OhioState

Guest
FYI, Just released....

Radio One, Inc. Announces the Sale of Radio Stations in Dayton, OH and Louisville, KY
WASHINGTON--(BUSINESS WIRE)--May 18, 2007--Radio One, Inc. (NASDAQ: ROIAK and ROIA) today announced that it has entered into an Asset Purchase Agreement to sell all of its radio stations in Dayton, Ohio and five of its six radio stations in Louisville, Kentucky, to Main Line Broadcasting, a portfolio company of Arlington Capital Partners, a Washington, DC-based private equity fund. The transaction price is approximately $76.0 million which represents a purchase price multiple of approximately 12x based on 2006 station operating income for the stations being sold. The transaction is expected to close during the second half of 2007.

Alfred C. Liggins, III, Radio One's CEO and President stated, "This attractive transaction represents a continuation of our stated plans to sell radio stations in markets that are not necessarily core to our strategy, at prices above the current public trading multiples for most radio companies. Louisville and Dayton are actually the smallest of all of our markets in terms of the actual population of African-Americans. Additionally, there are several non-urban stations among the 10 stations being sold in this transaction. We expect to use the proceeds from this transaction to reduce our leverage and further strengthen the Company's balance sheet."

Radio One, Inc. (www.radio-one.com) is the nation's seventh largest radio broadcasting company (based on 2006 net broadcast revenue) and the largest radio broadcasting company that primarily targets African-American and urban listeners. Pro forma for this transaction, Radio One owns and/or operates 61 radio stations located in 20 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. 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
 
The copy & paste brought it over to the subject line. I assume it is in regards to the Power. I didn't read anything about a new XM deal.
 
I posted this on the Cincinnati/Dayton board as well, I googled Main Line Broadcasting and found a little more info on the company.

Main Line Broadcasting was formed to build a group of radio station clusters in mid-sized markets, primarily in the eastern U.S. The company has made two acquisitions to date, and currently operates station clusters in Richmond, Virginia, Hagerstown, Maryland and Waynesboro/Chambersburg, Pennsylvania. These two acquisitions have resulted from the industry relationships of both CEO Dan Savadove and Arlington Capital.

The company is actively pursuing the acquisition of radio station clusters in attractive growth markets. Main Line targets acquisitions primarily in market sizes 50-150. The company currently operates nine radio stations in Virginia, Maryland and Pennsylvania.

Main Line Broadcasting is led by CEO Dan Savadove, a highly successful 25 year radio executive. Savadove served formerly as CEO of Root Communications, and was previously an executive with Chancellor Media, Patterson Broadcasting, Marlite Communications, and Infinity Broadcasting.
 
This could be the best thing to happen to the Dayton market in years. Heritage CHR WGTZ Z-93 needed a new owner, and this company could be the one to take it back to its past glory of the 80s and 90s. With Mainline not being married to the Urban market like Radio One, things could get interesting. Maybe they'll pump some $$$ Z's way. I commented more on this on the Dayton boards, where this conversation belongs.
 
Re: Radio One Selling all 5 Stations in Dayton (REVISED)

Please See Dayton Board for more information.
 
Just my personal observation, based on my experience with Main Line and the fact that it is a private equity fund: They will not be throwing large or even medium sums of cash into these properties. They will strategically "tweak" these stations, they will sound very professional and the money that they do spend will be spent on marketing the improved product. they may or may not flip formats. these people are serious about making money.
 
In my hometwon of louisville ky i certainly hope and pray main line does something with our station wlrs which is a active rock station with a little alt thrown in .It really is a horrific station i hope they either flip it or retool it. Over the past several months a few jocks are gone either on there own or fired.No reason to listen anymore there really is no morning show.I wish they would make it like your cd101 or the sound a little further south.
 
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