Radio One Inc., whose losses swelled to $386 million last quarter, has agreed to sell its Los Angeles radio station to Bonneville International Corp. for $137.5 million.
The Lanham-based broadcaster says it will use the money to reduce its leverage, expand its Internet operations and buy back stock.
KRBV-FM, an R&B station known as V-100 to its listeners, is the latest in a string of radio stations Radio One has sold. Most of the divestitures have been in underperforming stations or properties that Radio One has said don't fit into its plans for core market holdings.
It leaves Radio One with 53 stations in 16 markets. Radio One also owns Giant Magazine and the Tom Joyner Morning Show, and is part owner of TV One.
Radio One says its board of directors has also authorized a stock repurchase program of up to $150 million.
Radio One's class A stock (NASDAQ: ROIA) jumped 51 cents, or 49 percent, to $1.64 per share in Monday trading. The stock is still down 76 percent in the last 12 months.
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