Radio One Inc. Case Study And Analysis Help With Solution

Radio One Inc. Case Study And Analysis Help With Solution

Radio One (Nasdaq: ROIA, ROIAK), the largest radio group targeting African-Americans in the country, had achieved tremendous success by purchasing underperforming radio stations, changing them to urban formats, and using its programming, marketing, and operating skills to cut unnecessary costs. Under the leadership of Alfred Liggins III, chief executive officer and president, the company posted consistent, above-average, same-station broadcast revenue and cash flow growth, and grew from 7 stations in 1995 to 28 in 1999.
In October 1999, two of the nation’s largest owners of radio stations—Clear Channel Communications Inc. (NYSE: CCU) and AMFM Inc (NYSE: AFM)—announced plans to merge. Scott Royster (HBS ’92), chief financial officer and executive vice president of Radio One, knew that the Federal Communications Commission (FCC) would require Clear Channel to divest some of its radio assets after the proposed merger. The divestitures were an opportunity for Radio One to acquire 12 established urban stations in the top 50 markets. Acquiring those stations would more than double the size of Radio One and help build its national platform.
Liggins and Royster had to decide if Radio One should purchase the stations and how much to offer.
Please use the template included in the folder to work on your Radio One case. You are asked to value the stations Radio One is considering purchasing.
• Perform the valuation from Radio One’s point of view
• Pay attention to the strategic benefits of the acquisitions, but try to quantify them to include in the FCF calculations
o Purchase power
o SG&A

How it Works

How It works ?

Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention product code mentioned in end of every Q&A Page. You can also send us your details through our email id with product code in the email body. Product code is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.
Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to product code . The date is asked to provide deadline.
Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id and must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.
Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.
Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.
Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.


Features for Assignment Help

Zero Plagiarism
We believe in providing no plagiarism work to the students. All are our works are unique and we provide Free Plagiarism report too on requests.


We believe in providing perfect, relevant and 100% accurate solutions to the student as per questions asked. All our experts are perfect in providing that so as to give unique experience to the students.


Three Stage Quality Check
We are the only service providers boasting of providing original, relevant and accurate solutions. Our three stage quality process help students to get perfect solutions.



100% Confidential
All our works are kept as confidential as we respect the integrity and privacy of our clients.

Related Services


• Please assume purchase is financed through 100% equity, as the focus in this case is cash flow calculation issues. As such, in two places, you are asked to “normalize” cash flows. What is asked of you is to remove a distorting factor present in those cash flows
• Identify the potential risks, not only from the financial point of view, but also from the “management and integration” point of view
• Provide the price you are willing to pay and the incremental value for Radio One
Additional questions:
Why has Radio One been so successful in the last few years? Name one reason and leave other to your classmates. (at least, at the beginning of this thread)
Why have we seen such a consolidation boom in the last decade? According to the evolution of M&A multiples in the industry, could we say there was a bubble?
What implies from a business point of view paying 20x BCF for a company? Is this reasonable? How could this be?
In general, which are the most relevant factors or pre-conditions between 2 companies for synergies to exist in a merger/acquisition?
Can you think of any failed merger in your sector or industry? Which do you think were the reasons behind synergies not been materialized as initially planned?
Taking into account previous questions, can you think of the main risks that RO is facing when acquiring the different radio stations?

Product Code :Case66

To get answer for this question, kindly click here (Note: Don’t forget to write the product code in comment section)

You can also email us at but please mentioned product code in the mail body while sending emails.You can browse more questions to get answer in our Q&A sections here.


Comments are closed.