Essay on Radio One

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Radio one analsys 1) Why does Radio One want to acquire the 12 urban stations from Clear Channel Communications in the top 50 markets along with nine stations in Charlotte, NC, Augusta, GA, and Indianapolis, IN? What benefits and risks? The Reasons for acquiring the 12 urban stations from Clear Channel could be the following: - Bigger African American Base: It would draw more African-American listeners than any other radio broadcaster and cover more African-American households than any other media vehicle targeting the audience. Plus those 12 stations include a media company (BET Holdings) which targeted the African American population by its media “Black Entertainment Television”. - Greater advertising revenue: This…show more content…
| |2,003 |3.50% | |2,004 |3.60% | |2,005 |3.60% | |2,006 |3.60% | |2,007 |3.60% | |2,008 |3.60% | - There were Net Operating Losses in the initial years which we have carry forwarded it to the next years and calculated the Losses - Net Operating Losses Carried forwarded and the working of the same is as below: |Operating Losses |2001 | |Beta Assets |0.82 | |Market Risk Premium |7% | | | | |CAPM |11.93% | Based on the above assumption the Projected Cash Flows are as below: Operating Results: |2001 |2002 |2003 |2004 |2005 |2006 |2007 |2008 | |Net Revenue |128,313 |144,460 |159,985 |175,820 |189,007 |201,292 |211,357 |219,811 | |Less: Operating Expenses |57,741 |65,007 |71,993 |79,119 |85,053 |90,581 |95,110 |98,915 | |Broadcast Cash Flow |70,572 |79,453 |87,992 |96,701 |103,954 |110,711 |116,246 |120,896 | |Less: Corporate Expense |5,080 |5,604 |5,660 |6,328 |6,803 |7,245 |7,607 |7,911 | |EBITDA |65,492 |73,849 |82,331 |90,373 |97,151 |103,466 |108,639 |112,985 | |Less: Depreciation |90,000 |90,000 |90,000 |90,000 |90,000 |90,000

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