pproach,
many of our newly acquired stations performed exceptionally
well during the quarter as our clustering strategy helped
produce operating efficiencies. In line with our business
plan, we also completed an equity offering in February of
4.75 million shares, which has strengthened the balance
sheet and will help fund further acquisitions in targeted
markets (Business Wire, 2000a, p. 1).
Description of Firm, Management and Environment
The Company is based in Las Vegas, Nevada. Due to an aggressive business plan which focuses on acquisitions of radio stations in mid-sized markets, it has leapfrogged into the upper echelons of the $200 million-plus radio groups with its November, 1999, purchase of Broadcast Partners Holding LP (Rathburn, 1999a). Under the leadership of CEO Wilson, the Company has created a massive national broadcast infrastructure, acquired a substantial presence in new markets each year, and has advanced to a number 6 position in its industry. Its main competitors hold the 1 through 5 spots are, in descending order: the combined Clear Channel Communications and AM/FM Incs., Infinity Broadcasting Corp., ABC Radio, Inc., Entercom Communications Corp., and Cox Radio Inc. (Rathburn, 1999a).
The Company focuses on mid-sized markets because they offer lower purchase prices and less competition (Hoover's Online, 1999). As noted above, this strategy has resulted in significant sales and net growth and dramatic increases in employee growth level. In December of 1999, the firm filed a $1 billion shelf offering, arranged a $400 millio
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