Urban One, Inc. Fresh Off Great Financial Report Has Potential Power Move with New York City's Hot 97 and WBLS
Urban One, Inc. formerly known as Radio One recently held a conference call where CEO Alfred Liggins, III released the company's financial report and disclosed their “fantastic investment” in MGM National Harbor resulting in a net gain of $136.8 million after issuing a “put notice” in April that required MGM to buy back all of the media company’s minority investment in the gaming resort in suburban Washington. That's more than enough to go radio hunting.
"I was pleased that Adjusted EBITDA came in right on top of our full year guidance at $165.6 million, a new highwater mark for Urban One."
“We think there are a number of other potential radio acquisitions that are out there right now,” Liggins noted during the call. The company is in a purchasing mode, having bought four Houston stations earlier this year for $27 million. Liggins also said buying a mix of assets would be in the best interest of the company with its sights still set on the Richmond, VA casino project (now partnered with Churchill Downs), which is still in limbo pending a voter referendum.
Liggins revealed that the profitability of radio stations were a concern in the past, but now that concern has been passed on to their cable channel TV ONE. He sees radio as a strong investment at this time.
Mediaco Holdings, Inc., purchased Hot 97 and WBLS from Emmis Broadcasting for approximately $97 million (in cash and note) in 2019. There are very strong rumors emanating from the Big Apple that the stations are weeks away from being sold to another media company with a cluster of stations already present in New York City. Perhaps they will be sold separately.
[A history note here: In 2014 Emmis, already owner of Hot 97, bought WBLS and 1190 WLIB for $130 million. Two years earlier the intellectual property of 98.7 KISS-FM was sold to WBLS and owner YMF Media in 2012. Earvin "Magic Johnson" was a minority owner in that company.]
A purchase of both Hot 97 and WBLS, in today's media climate, most likely would not be as much.
Where does Urban One, Inc., the company founded by Ms. Cathy Hughes come into play? Make no mistake, the company has always had a desire to own a station in the largest media market in the country. With the amount of cash they have on hand at this time, the timing may not be better than now, for Urban One to make a bid on the legendary 107.5 WBLS, if not Hot 97 as well.
[A history note here: In 2014 Emmis, already owner of Hot 97, bought WBLS and 1190 WLIB for $130 million. Two years earlier the intellectual property of 98.7 KISS-FM was sold to WBLS and owner YMF Media in 2012. Earvin "Magic Johnson" was a minority owner in that company.]
A purchase of both Hot 97 and WBLS, in today's media climate, most likely would not be as much.
Where does Urban One, Inc., the company founded by Ms. Cathy Hughes come into play? Make no mistake, the company has always had a desire to own a station in the largest media market in the country. With the amount of cash they have on hand at this time, the timing may not be better than now, for Urban One to make a bid on the legendary 107.5 WBLS, if not Hot 97 as well.
Maintaining minority ownership in WBLS has been a concern for the New York City Black community throughout its history. The legacy R&B station was founded by famed attorney and borough president Percy Sutton, Esq. as Inner City Broadcasting. When that company went bankrupt and YMF Media became owners, such luminaries as the Rev. Al Sharpton, were very concerned that WBLS maintained minority ownership. This is a factor that is important today for sure, which may work in favor for Urban One, Inc.
We would have one programming concern if Urban One, Inc./Radio One purchased WBLS. It would be only natural for new ownership to make changes...
The former WNBM-FM "Radio 103.9" was a station that aired in the New York City area from 2014–2022 with a very limited signal from suburban Bronxville. It was billed as competition for WBLS. It did not do very well. The station featured much of it's syndicated programming from Reach Media. Those shows such as the Tom Joyner Morning Show and D.L. Hughley aired on the station. Reach Media is owned by Urban One, Inc.
We would hope they would not change the lineup on WBLS. Every daypart features strong and talented personalities. Everyone knows New York City radio listeners won't tune into syndicated programming other than the Steve Harvey Morning Show, which launched many years ago in syndication nationally from WBLS.
The SHMS show still features a daily news segment with New York radio personality Ann Tripp. Reach Media gospel shows with Erica Campbell and others along with Rev. Al Sharpton talk show currently air on 1190AM WLIB. We don't see that changing. Reach Media already has a presence in the Big Apple.
It would be a mistake to bring in shows like airing the Rickey Smiley Morning Show or D.L. Hughley in an attempt to boost Reach Media's revenue. WBLS is strong enough of a brand for a company like Urban One/Radio One to leave well enough alone.
Our advise to Reach Media/Urban One, iHeart, Audacy, and all other media companies- develop the next Urban Adult R&B morning show for when Steve Harvey is ready to hang up the headphones and microphone.
We would hope they would not change the lineup on WBLS. Every daypart features strong and talented personalities. Everyone knows New York City radio listeners won't tune into syndicated programming other than the Steve Harvey Morning Show, which launched many years ago in syndication nationally from WBLS.
The SHMS show still features a daily news segment with New York radio personality Ann Tripp. Reach Media gospel shows with Erica Campbell and others along with Rev. Al Sharpton talk show currently air on 1190AM WLIB. We don't see that changing. Reach Media already has a presence in the Big Apple.
It would be a mistake to bring in shows like airing the Rickey Smiley Morning Show or D.L. Hughley in an attempt to boost Reach Media's revenue. WBLS is strong enough of a brand for a company like Urban One/Radio One to leave well enough alone.
Our advise to Reach Media/Urban One, iHeart, Audacy, and all other media companies- develop the next Urban Adult R&B morning show for when Steve Harvey is ready to hang up the headphones and microphone.
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