URBAN ONE ENTERS INTO AGREEMENT WITH EMMIS TO PURCHASE INDIANAPOLIS RADIO STATIONS

Rhea-AI Summary

Urban One, Inc. (NASDAQ: UONEK; UONE) announced a definitive asset purchase agreement with Emmis Communications to acquire its Indianapolis Radio Cluster, which includes stations WYXB, WLHK, WIBC, and others. The acquisition is deemed accretive and expected to enhance Urban One's portfolio. In preparation, Urban One plans to divest its WHHH station. Both transactions require FCC approval, anticipated to close in Q3 2022. Urban One operates the largest media company targeting Black Americans in the U.S., with significant assets in radio, television, and digital platforms.

Positive

• Acquisition of Indianapolis Radio Cluster is expected to be accretive to Urban One's portfolio.
• Enhances Urban One's reach in the market with diverse station formats.
• Strategic divestiture of WHHH station to facilitate the acquisition.

Negative

• Acquisition and sale transactions are subject to FCC approval, introducing regulatory risks.

SILVER SPRING, Md., June 13, 2022 /PRNewswire/ -- Urban One, Inc. (NASDAQ: UONEK; UONE) today announced it had signed a definitive asset purchase agreement with Emmis Communications to purchase its Indianapolis Radio Cluster.  Under the terms of the agreement, Urban One will acquire WYXB (B105.7FM), WLHK (97.1FM), WIBC (93.1FM), translators W228CX and W298BB (The Fan 93.5FM and 107.5FM), and Network Indiana.   

"These are terrific general market formats (Best Variety, Country, News and Sports) and will be a great addition to Urban One in a transaction that is accretive and deleveraging," said Alfred Liggins, President and CEO, Urban One. 

In anticipation of the transaction, Urban One will sell its WHHH station along with the intellectual property related to WNOW to a third party. Both the acquisition and disposition are subject to Federal Communications Commission ("FCC") approval and other customary closing conditions, anticipated in the third quarter of 2022.  Emmis will continue to operate its stations and Urban One will continue to operate WHHH until the transaction closes.

About Urban One, Inc.

Urban One, Inc. (urban1.com), together with its subsidiaries, is the largest diversified media company that primarily targets Black Americans and urban consumers in the United States. The Company owns TV One, LLC (tvone.tv), a television network serving more than 59 million households, offering a broad range of original programming, classic series and movies designed to entertain, inform and inspire a diverse audience of adult Black viewers. As of December 31, 2021, we own and/or operate 63 independently formatted, revenue producing broadcast stations (including 54 FM or AM stations, 7 HD stations, and the 2 low power television stations we operate) branded under the tradename "Radio One" in 13 urban markets in the United States. Through its controlling interest in Reach Media, Inc. (blackamericaweb.com), the Company also operates syndicated programming including the Rickey Smiley Morning Show, the Russ Parr Morning Show and the DL Hughley Show. In addition to its radio and television broadcast assets, Urban One owns iOne Digital (ionedigital.com), our wholly owned digital platform serving the African American community through social content, news, information, and entertainment websites, including its Cassius, Bossip, HipHopWired and MadameNoire digital platforms and brands. We also have invested in a minority ownership interest in MGM National Harbor, a gaming resort located in Prince George's County, Maryland. Through our national multimedia operations, we provide advertisers with a unique and powerful delivery mechanism to the African American and urban audiences. 

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SOURCE Urban One, Inc.

FAQ

What did Urban One announce on June 13, 2022?

Urban One announced a definitive asset purchase agreement to acquire Emmis Communications' Indianapolis Radio Cluster.

Which radio stations are included in the Indianapolis Radio Cluster acquisition by Urban One?

The acquisition includes WYXB (B105.7FM), WLHK (97.1FM), WIBC (93.1FM), and others.

What is the expected impact of the acquisition on Urban One?

The acquisition is expected to be accretive and enhance Urban One's market presence.

What regulatory approval is needed for Urban One's acquisition?

The acquisition requires approval from the Federal Communications Commission (FCC).

What is Urban One planning to divest in anticipation of the acquisition?

Urban One plans to sell its WHHH station along with related intellectual property.