Radio One, Inc. - Finance 6000 Case Study.

Introduction In 1980 Catherine Hughes and her husband raised money to purchase a radio station in Washington, D.C., for just under $1 million. They started the radio station by changing it from a R&B station and public affairs to talk radio. Starting off as radio hosts and becoming personalities throughout the years, the Hugheses acquired more and more stations. In 1987 they purchase WMMJ-FM for $7.5 million, in 1992 and 1993 they purchased four stations in Baltimore, …

…increasing, since more radio stations in big American cities would be acquired. "The South" with its cities Charlotte, Atlanta and Augusta, are just perfect markets to expand into, gain more revenue and increase advertising. Marketing and financing activities would gain from the purchase, since more broadcasting means more cash inflow through advertising and more investors would be interested in investing into Radio One, Inc., making it one of the strongest competitors in the broadcasting business.