Radio One Plans to Buy Blue Chip

Radio One Inc., the largest U.S. radio broadcaster serving black listeners, agreed to buy closely held rival Blue Chip Broadcasting Inc. for about $135 million in stock and cash to expand in urban markets.

Radio One will pay $45 million in cash and $90 million in stock, Chief Financial Officer Scott Royster said. It also will pay $55 million to refinance Blue Chip’s debt. The purchase includes 15 radio stations owned and/or operated by Cincinnati-based Blue Chip in Ohio, Minnesota and Kentucky.

The purchase advances Radio One’s aim to dominate the U.S. urban radio business. The Lanham-based company owns 63 stations in 22 of the largest markets.

Radio One’s Class A shares rose 44 cents to $14.94 on Nasdaq.