If you have not heard of a stock repurchase program, it is pretty much a program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. Share repurchase is usually a sign or an indication that the company’s management thinks the shares are undervalued. The company can buy shares directly from the market or offer its shareholder the option to tender their shares directly to the company at a fixed price.
Radio One has just implemented their own version of stock repurchase program. The company announced that its Board of Directors has authorized a repurchase of shares of the Company’s Class D common stock (the “Repurchase Program”). The Repurchase Program authorizes the repurchase of shares with an aggregate value of up to $3.5MM. The Repurchase Program is authorized for up to 24 months and purchases under the plan may be made from time to time in open market purchases, through privately negotiated transactions or otherwise.