Radio One

radiocommunication champion, Inc. The radio receiver unmatchable was the largest radio root which targeted in black in the US. It achieved its goal by acquire the underperforming radio send and changing them to urban initializes. The Radio matchless treasured to make the learnedness by the following infra: * 12 send from guide Channel station in the croak 50 markets * One station in Charlotte in north-central Carolina and five stations in Augusta, Georgia from David b be * 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 getting these stations There are many reasons why the Radio One acquired the total 21 stations. Radio Ones target segment was African-American which had significant growth in populations and incomes. The African-American listened to the radio on average 24% lasting than the general population. Therefore, Radio One wanted to exp and to a greater extent than radio stations in different demographic segments at heart the African-American populations. Furthermore, it could knock down costs and create efficiencies and reach an economy of scale. Due to limit of the advanced entrants, when Radio One became larger, it could restrict the competition by making barriers for the new entries.

According to efficacious market theory, when new information is announced to the market, the spud prices leave be affected. Thus, subsequently acquisition of Radio One was announced, Radio One stock price increased from mid-$40 to $ 97 per share. It might event overtrading in th e Radio One stock. neaten Channel was the ! soils largest radio station instrument both home(prenominal) 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 locate of management team so if the acquiring 12 stations of Clear Channel was successful, Radio One would get more African-American...If you want to get a sufficient essay, order it on our website: BestEssayCheap.com

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