Al Liggins and Cathy Hughes have managed to do the impossible over the years – avoid bankruptcy.
But what kind of shape is a boutique black-targeted media company like Urban One really in?
On one hand, they have seen a lot of competitors fall on hard times not the least of which is the number one group, iHeartMedia with their 850 stations.
And Cumulus with 90 markets, the majority of which are not and have not been making their numbers even before they filed for bankruptcy.
Yet, Urban One is still afloat albeit in uncertain times.
Their employees very much care about whether they can remain whole and avoid the uncertainties of bankruptcy.
Of course, their banks and lenders care.
But so do other radio groups who might covet the major markets they are in if they have to sell properties to stay afloat.
So, what’s Urban One’s financial condition?
- They diversified and placed a bet on help from non-radio businesses – As of now, Urban One (formerly Radio One) is reportedly deriving approximately half of its income from sources other than radio station revenue. That is highly unusual among radio companies, but it was a strategy that Liggins and Hughes personally felt they had to pursue.
- What Urban One is doing to as a hedge against increasing debt that other groups may have to do, too
- The TV One acquisition – accretive or too risky
- The current biggest threat to Urban One’s future
- Can Urban One avoid bankruptcy in a year when 2 of the 3 biggest radio groups could not
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