Radio One

first in the radio industry to primarily target African-American and urban listeners. Its strategy was to expand within existing markets and into new markets that had a significant African-American presence by acquiring and turning around under performing radio stations. The belief was that radio broadcasting primarily targeting African-Americans had significant growth potential and also that there was a competitive advantage in the African-American market and the radio industry in general, due to Radio One’s primary focus on urban formats, skill in programming and marketing these formats, and turnaround expertise.. Radio One, Inc. is led by Chairperson and Founder, Catherine L. Hughes, and her son, Alfred C. Liggins, III, Chief Executive Officer and President, who together have over 45 years of operating experience in radio broadcasting.  Radio One (NASDAQ: ROIA and RIOAK), had the opportunity to acquire 12 urban stations in the top 50 markets from Clear Channel Communications, Inc. the nation’s largest radio station operator in the winter of 2000. The stations were being sold by Clear Channel Communications, Inc. to obtain Federal Communications Commission (FCC) approval for its acquisition of AMFM, Inc. Radio One was also negotiating the acquisition of nine stations in Charlotte, North Carolina, Augusta, Georgia, and Indianapolis, Indiana. The proposed acquisitions would double the size of Radio One. The purpose of this Memo is to analyze the strategic and financial evaluation of the proposed acquisitions and to recommend strategies for ensuring these acquisitions are seamless. ● Page