Radio One particular INC.
This case involves a great expansion of Radio One Inc. The corporation is analyzing several areas that are available today due to a divesture that Clear Channel was necessary to complete. A radio station One's approach is to be the top urban- oriented music, entertainment, and data to African-American in as many major markets possible. With this option Radio One can possibly acquire an additional 12 channels in areas they have certainly not been able to locate before. The results with the expansion will bring increased advertising revenue and wide open avenues for the company to expanding to other forms of media such as cable, internet, and etcвЂ¦. Liggins and Royster possess purchased underperforming radio stations and gain a better market in many cities. To capitalize with this great prospect, Liggins and Royster must decide whenever they purchase these 12 channels and if certainly, on how much should they present to obtain these people.
With the population of African-Americans growing in the late 80's early 90's, expanding the radio stations to these growing demographics will help Radio One's viewers share percentage to increase. The African-American population has been increasing in cash flow growth making them a human population in which promoting companies would like to target. The strength ratio is a calculation of revenue discuss divided simply by audience discuss. This proportion indicated how much radio advertising dollars in a certain market was being gathered by a particular station in accordance with its talk about. Historically, A radio station One has encounter power proportions resulting in less than one as a result of income levels of the target market these people were outreaching. By the year 2000 Radio One has increase their power ratio from. 71 to. 85 but still rising.
In 1999 A radio station One Inc became a publicly traded firm. Evaluating the company's Balance Linens from prior years, Radio One was having issues with long-term personal debt. Their total debt ratio and the long term debt percentage were the two over 95%....