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Below is an essay on "Radio One" from Anti Essays, your source for research papers, essays, and term paper examples.

Radio One, Inc.
The Radio One was the largest radio group which targeted in African-American in the US. It achieved its goal by purchasing the underperforming radio stations and changing them to urban formats. The Radio One wanted to make the acquisition by the following below:
  * 12 stations from Clear Channel stations in the top 50 markets
  * One station in Charlotte in North Carolina and five stations in Augusta, Georgia from David broadcasting
  * Three stations in Indianapolis from Shirk,Inc and IBL,LLC
Therefore, the total proposed acquisition was total 21 stations.
The reasons, benefits and risks of acquiring these stations
There are many reasons why the Radio One acquired the total 21 stations. Radio One’s target segment was African-American which had significant growth in populations and incomes. The African-American listened to the radio on average 24% longer than the general population. Therefore, Radio One wanted to expand more radio stations in different demographic segments within the African-American populations. Furthermore, it could reduce costs and create efficiencies and reach an economy of scale.
Due to limitation of the new entrants, when Radio One became larger, it could restrict the competition by making barriers for the new entries.
According to efficient market theory, when new information is announced to the market, the stock prices will be affected. Thus, after acquisition of Radio One was announced, Radio One stock price increased from mid-$40 to $ 97 per share. It might cause overtrading in the Radio One stock.
Clear Channel was the nation’s largest radio station operator both domestic and international stations. The merger would create the largest radio company in terms of revenues and number of stations. Moreover, Some of Clear Channel stations were similar to Radio One format and had the strong position of management team so if the acquiring 12 stations of Clear Channel was successful, Radio One would get more African-American...

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