Radio One L.A. Sale Closing Set For Friday
May 28, 2008 at 7:50 AM (PT)
At RADIO ONE's shareholders meeting WEDNESDAY, the company announced that it expects to close on the sale of AAA KSWD-F (100.3 THE SOUND)/LOS ANGELES (formerly Urban AC KRBV (V100)) on FRIDAY (5/30). RADIO ONE sold the station to BONNEVILLE for $137.5 million.
CFO PETER THOMPSON reiterated that the NASDAQ delisting threat issued against the company is only related to its Class A shares, representing less than 5% of the company's stock. NASDAQ issued a letter to the company on MAY 21 that gave the company until AUGUST 19 to bring the market value up to $5 million or the Class A stock would be delisted. The company's Class D shares are unaffected by the NASDAQ threat.
I'm not making excuses for the company's performance...
Addressing the company's lackluster performance, Pres./CEO ALFRED LIGGINS said, "I do not see any relief in sight" from radio's economic woes, adding that the company's diversification with TV ONE and online initiatives into "the company that services the African-American market bigger and better than anyone else" is the result of the desire not to concentrate solely or primarily on radio.
"Our stock price is, in a word, decimated," LIGGINS lamented, noting that he and his mother, Chairperson/Secretary CATHY HUGHES, have been personally hardest hit by the situation, considering their large personal holdings in the company. He compared the company's stock price problems with other radio companies, noting that the other firms have also seen their stocks battered in the market. "I'm not making excuses for the company's performance... we did not do a good job by any stretch of the imagination with our LOS ANGELES station," said LIGGINS, chronicling the company's difficulties. "In my mind, we took a $20 million haircut" on the station from what it might have fetched after being fixed, LIGGINS admitted.