Radio One buys social networking company for $38Million…
April 14, 2008 by Staff
Filed under Money/Business, News
(Akiit.com) Money-losing Radio One Inc., which is pinning future growth on Internet outlets, has acquired social networking company Community Connect Inc. for $38 million.
Lanham-based Radio One gains several established Internet sites with the acquisition, including AsianAvenue.com and BlackPlanet.com. It said Community Connect’s sites have more than 20 million members.
“We will be the clear number one in the African-American online space” with the acquisition, said Alfred Liggins III, the chief executive officer, said in a statement. “We believe that they are a great compliment to our existing radio, TV and online properties.”
Radio One (NASDAQ: ROIA) owns and operates 53 radio stations in 16 markets, including four Baltimore stations: WERQ-FM 92Q Jams, WOLB-AM 1010, WWIN-AM 1440 and WWIN-FM Magic 95.9. Its stations primarily target African-American and urban listeners.
Radio One has sold nine radio stations in the last year. Its losses swelled to $386 million last quarter. The company has acknowledged that the radio advertising market has been challenging. Liggins has called digital initiatives “a critical growth engine” for the company.
It also owns Giant Magazine and the Tom Joyner Morning show, and is part owner of TV One.
Written by Jeff Clabaugh