Radio chain grows in Ind.

Broadcaster buys 3 Indianapolis stations for $40 million

Black audiences targeted

Radio One hopes to gain urban strength in Midwest

Acquisitions Radio One completes purchase of 3 stations in Ind. for $40 million

June 10, 2000|By Shanon D. Murray | Shanon D. Murray,SUN STAFF

Radio One, the largest radio broadcasting company targeting urban African-American audiences, said yesterday it completed the acquisition of three radio stations in Indianapolis, Ind., for about $40 million in cash and stock.

As part of the deal, Lanham-based Radio One also purchased a low-powered television station there.

Indianapolis is the 31st largest African-American market in the U.S.

"Through this acquisition, we are acquiring a strong urban position in a great Midwestern market," Alfred C. Liggins III, Radio One's chief executive and president, said in a statement.

"These stations are having a great year and have tremendous potential," Liggins said.

On Thursday, Radio One completed a $24 million cash and stock acquisition of a small Southern radio chain from Davis Broadcasting Inc. Davis owns one station in Charlotte, N.C., and five in Augusta, Ga.

Both acquisitions are expected to be accretive to Radio One's 2000 and 2001 cash flow, Liggins said.

William Shirk, president of Shirk Inc., will stay on as head of Radio One's Indianapolis operations.

Greg Davis, president of Davis Broadcasting, joined Radio One's management team.

The purchases of WHHH-FM, WBKS-FM and WYJZ-FM from Shirk Inc. and IBL LLC in Indianapolis, as well as the acquisition of WCCJ-FM, WAKB-FM, WAEG-FM, WAEJ-FM, WFXA-FM, and WTHB-AM in the Southeast, furthers Radio One's mission to strengthen its already formidable position in the African-American radio market, analysts said yesterday.

Radio One owns or operates 50 radio stations, including two in Baltimore - WERQ-FM and WWIN-FM.

Paul T. Sweeney, an analyst with Credit Suisse First Boston in New York, said Radio One is growing aggressively through acquisitions and has been very active this year.

In March, the company said it would acquire 12 stations from Clear Channel Communications Inc. for $1.3 billion.

"We definitely characterize Radio One as the leading urban radio broadcaster," Sweeney said.

Radio One's shares fell yesterday 12.5 cents to close at $25.

The company went public in May 1999.

In February, Radio One filed with the U.S. Securities and Exchange Commission for a public offering of 5 million shares of stock to raise an expected $397 million to use, in part, to buy stations.

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