RADIO ONE CASE
For the case analysis the following questions should be kept in mind:
1. Why does Radion One want to acquire the 12 uraban stations from CCC? What are the benefits and risks?
2. What price should Radio One offer based one a discounted cash flow analysis? Are the cash flow projections reasoable?
3. What price should Radion One offer based on a transaction and trading multiples analysis?
4. Assuming Radio Ones stock price is 30xBCF, can it offer as much as 30x BCCF for the new stations?
5. What should Radio One offer for the new stations?