Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
After the acquisitions are made, the stock price will drop back down to a more normal multiple. It is the more normal multiple that Radio One has to keep in mind when considering the long-run dilutive effect of the purchase.
The rate at which Radio One should pay should reflect the future cash flows of the businesses it is buying. Normally, the company buys underperforming stations and then turns them around. That strategy allows it to take stations that are not doing well and bring up their performance -- this justifies a higher valuation than the current multiple on those stations. However, there is no evidence that the ClearChannel stations are underperforming. They are being divested to comply with antitrust regulations, which is an entirely different situation. RadioOne is, therefore, much less likely to add significant value to these stations. It must divest these stations as part of its agreement with antitrust regulators. In addition, the FCC would prefer that ClearChannel sells to a minority owner, since the stations serve the African-American community. Radio One is basically the only potential buyer from the community that can purchase a block of stations. For the sake of simplicity and pragmatism, ClearChannel would most likely prefer to deal with Radio One, rather than selling the stations to multiple different buyers.
The premium over the present value of expected future cash flows that RadioOne should pay is therefore not as large as it would normally pay, simply because it is not going to add as much value as it normally does. A rate between 20x and 22x BCF is therefore more reasonable than anything close to 30x BCF.
Radio Frequency Identification (RFID) technology Advantages and disadvantages of RFID technology to the organization RFID technology has many benefits over traditional technologies as it changes the process becoming automatic. Conventional tracking technologies require manual connections, which include labor intense, very time intense and error vulnerable. With RFID technology, it has notable advantages that can raise the performance of management and inventory. Efficient Inventory Tracking system: The main benefit to using RFID in the
As one would expect, those with children and teens tended to increase visits in the summer. While the older demographic groups dominated during the winter months. Seasonal fluctuations in Cornwall follow typical patterns found in non-tropical regions. The tourism trade in Cornwall depends on the influx of seasonal visitors during the warm summer months. According to statistics from the Cornwall Tourism Board (2007), the largest percentage of visitors were from
(Reachout Trust, para. 12) Over the past six decades, the MBTI has become very successful worldwide. It is used by a number of educational concerns, non-profit organizations and corporations for a variety of reasons. These include: Careers/Personal Development: The MBTI helps people identify career and/or life paths. A person's type preferences indicates skills they are most likely to pick up easily, as well as occupations they might be interested in or
Radio Industry Has Changed Imagine studying media convergence, when one discovers radio. Radio has changed over the years. People can now access it online and within his or her own car. Everything has become digital. Without radio, people are not current with the latest songs and artists because of how much it shapes culture. One will discuss radio and its evolution while discussing an actual that took place currently. Radio Radio first
3). The original cable television analogy did not prove viable for Sirius XM, partially because cable TV became ubiquitous when there were fewer free entertainment options open to consumers. Furthermore, even television itself has become less popular, as more consumers are turning to streaming web-based content to get their visual 'fix.' Consumers have become more rather than less beholden to using the computer to get their news, entertainment, and downloadable music,
Battle in Radio Broadcasting Identify the organization's generic strategy The organization's generic strategy is important. XM strives to offer a broad and appealing means of selection for the listener. Through this, the individual pays $12.95 a month in order to have the programming as commercial free as possible. However, they also offer a family plan where one can pay $6.99 a month, so that the person can have additional radios within their