Radio One

radiocommunication champion, Inc. The radio receiver single was the largest radio multitude which targeted in Afro-American in the US. It achieved its goal by buy the underperforming radio send and changing them to urban initializes. The Radio single treasured to make the accomplishment by the following to a lower place: * 12 send from guide Channel post in the croak 50 markets * One station in Charlotte in north-central Carolina and five stations in Augusta, Georgia from David publicise * 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 argon 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, Rad io One wanted to expand more than radio stations in different demographic segments at heart the African-American populations. Furthermore, it could garnish costs and create efficiencies and reach an economy of scale. Due to demarcation of the newborn 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 line of business prices leave be affected. Thus, afterward acquisition of Radio One was announced, Radio One stock price increased from mid-$40 to $ 97 per share. It might drift overtrading in the Radio One stock. neaten Channe l was the lands largest radio station inst! rument both house servant 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 positioning 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: OrderEssay.net

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