After the close this evening, ethnic media player Radio One, Inc. (NASDAQ: ROIAK) (NASDAQ: ROIA) announced it was acquiring a social networking company called Community Connect for around $38 million. Interestingly enough Radio One has a mere market cap of $143 million.
The good news is that does diversify Radio One away from radio, as the company has been trying to do. The exact terms were not disclosed. Back in the day, this would have been a huge gain. Hopefully Radio One can monetize the social networking theme better than others have.
Community Connect Inc. is an online community destinations for US ethnic groups with the three largest niche-targeted communities: AsianAvenue.com, BlackPlanet.com and MiGente.com. This notes that it has some 20 million members.
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Radio One’s trading range for the more active ROIAK shares over the last 52-week sis $0.99 to $7.73. Shares closed at $1.50 today.
Jon C. Ogg
April 10, 2008
Jon Ogg produces the Special Situation Investing Newsletter. He can be reached at firstname.lastname@example.org and he does not own securities in the companies he covers.