Urban One Closes Deal With Emmis In Indy, Diversifying Its Format Mix

 

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Story by Inside Radio 

Two weeks after getting the greenlight from the Federal Communications Commission, Urban One has closed on a pair of deals in the Indianapolis market that expands its cluster to six stations and a pair of translators and takes the African American media specialist deeper into the general market. Urban One is both a buyer and seller in the double closing.

In the first part of the deal, which was announced in June, Urban One has closed on a $25 million deal to buy soft AC “B-107.5” WYXB, country “Hank 97.1” WLHK, and news/talk WIBC (93.1) from Emmis Communications. The deal also includes the Indianapolis-licensed translators W228CX at 93.5 and W298BB at 107.5 FM which rebroadcast sports “The Fan,” which originates on WIBC-HD2. Urban One already owned four stations in the market including rhythmic CHR “Hot 96.3 WHHH, CHR “Radio Now 100.9” WNOU, urban AC WTLC-FM (106.7) and gospel “The Light” WLTC (1390).

In order to comply with FCC local market caps, Urban One has also closed on its $3.2 million deal to spin-off WHHH to Bible Broadcasting Network. Prior to the closing, Urban One moved the “Hot 96.3” rhythmic CHR programming that was on WHHH to 100.9 WNOU, displacing CHR “Radio Now.” The WHHH call letters have transferred to the new dial position, while Bible Broadcasting Network will adopt the new WYHK call letters on 96.3 FM. Bible Broadcasting will operate the station as a noncommercial outlet, joining its network of more than 50 religious teaching stations.

The sale of the Emmis Indy cluster to Urban One is the biggest radio deal so far this year. It also shows Urban One continuing to diversify beyond its core strategy of operating stations that primarily serve African American audiences and moving more into the general market.

Speaking to analysts last month during the company’s second quarter earnings call, CEO Alfred Liggins said the format diversification strategy is paying off. “It's not a business diversification, it's diversification of formats,” he explained. “These are a bunch of general market formats, versus our typical urban-targeted formats. That strategy worked really well for us with the swap we did with Entercom where we got bigger in Charlotte, North Carolina.” That multi-market swap in November 2020 gave Urban One hot AC “107.9 The Link” WLNK, news/talk WBT-AM/FM (1100 & 99.3) and sports WFNZ (610) and the Charlotte-licensed translator W273DA at 102.5, which simulcasts WFNZ.

Said Liggins, “That diversification strategy is actually what really saved the company.”