We now have a price for the deal sending five stations apiece from Louisville KY and Dayton OH from Urban specialist Radio One to Dan Savadove's Main Line Broadcasting. Main Line will pay about 76M for ten stations in two markets, including five FMs in Louisville and an AM and four FMs in Dayton. Radio One pegs the multiple at 12X 2006 station operating income.
Radio One's Alfred C. Liggins III confirmed RBR's speculation on some of the motives behind the sale. In addition to reducing the company's leverage and strengthening the balance sheet, Liggins noted "Louisville and Dayton are actually the smallest of all of our markets in terms of the actual population of African-Americans.
Additionally, there are several non-Urban stations among the 10 stations being sold in this transaction." Sounds like a perfect definition of "non-core properties" to us. Peter S. Handy of brokerage firm Star Media Group represented Radio One in the transaction.