In an SEC filing Urban One states it will pay $4.2 million for WTEM.
The company also anticipates to generate approximately $1.7 million of pro-forma EBITDA from the station for the remainder of the fiscal year at a multiple of 2.5x.
Original Report 5/21: Daniel Snyder’s Red Zebra Broadcasting is selling its last outlet as Urban One acquires Sports “980 The Team” WTEM Washington DC to Urban One for an undisclosed price.
The companies have also agreed to a rights deal to keep the NFL’s Washington Redskins gameday programming on the station, as WTEM will no longer be under common ownership with the franchise. Like last year, the games will also be heard on Cumulus Conservative Talk 630 WMAL/105.9 WMAL-FM.
This is the second deal in recent years between the two companies as Red Zebra sold former WTEM simulcaster 92.7 WWXT Prince Frederick MD and “ESPN Richmond” 950 WXGI Richmond VA last year. Urban One owns Urban 93.9 WKYS, Urban AC “Majic 102.3/92.7” WMMJ/WDCJ, Gospel “Praise 104.1” WPRS-FM, Gospel “Spirit 1340” WYCB, and Urban Talk 1450 WOL in the Washington market.
Urban One, Red Zebra Broadcasting and the Washington Redskins announced today that Urban One has signed a definitive agreement to acquire the assets of the radio station The Team 980 (WTEM 980 AM) from Red Zebra Broadcasting, pending FCC approval. In addition, Urban One has also entered into an agreement with the Washington Redskins to ensure that all Redskins games, as well as pregame and postgame programming, will remain on The Team 980.
The acquisition is the first step in a collaborative effort between the Redskins and Urban One to keep The Team 980 as the fans’ premier source for radio coverage of the Washington Redskins.
“We believe the future of The Team 980 is in great hands with Urban One,” said Terry Bateman, Chairman of Red Zebra Broadcasting. “We view this as an opportunity for Urban One and the Redskins to build a close partnership to continue to provide the Redskins’ fans with unparalleled access and content, keeping The Team 980 as the fans’ destination for the best Redskins coverage.”
In addition to The Team 980, the Redskins game day broadcasts – including pregame, in-game and postgame programming – will air on WMAL 105.9 FM and 630 AM as a valued part of the Redskins Radio Network.
“This is a tremendous opportunity for Urban One and we are especially pleased that through our acquisition, The Team 980 will continue to be locally owned. The acquisition of The Team 980 is very much in line with our strategy of super-serving our community of listeners. We have deep roots in the greater Washington, DC area and are well aware that The Team 980 has always been a fan favorite,” said Alfred C. Liggins, President and CEO of Urban One. “Red Zebra has a track record of producing great programming that engages our hometown sports fans. We look forward to working with the Washington Redskins organization to continue this tradition.”