It’s television assets include the cable networks TV One and Cleo, and it boasts a collection of broadcast radio stations and the Reach Media national radio programming and ad sales arm. Urban One is also in the casino resort business, and owns the MGM National Harbor facility outside of Washington, D.C.
The company founded by Cathy Hughes and led by Alfred Liggins III wants more — in particular a casino resort in Richmond. But, there’s word the Commonwealth of Virginia wants to move the project south of town, removing Urban One from involvement.
Once that news surfaced, Urban One shares sank significantly on Wall Street.
On volume of 5.27 million shares against average volume of 306,053 shares, UONE was off by 44.4% to $6.94 on Monday.
In immediate after-hours trading, bargain seekers pushed the company’s shares back up to $7.01. Still, the massive sell-off is in direct response to news that Urban One “may pursue legal action to counter a legislative effort to dash the Richmond casino.”
That report comes courtesy of the Washington Business Journal. The publication said early Monday that Virginia “is making efforts to cut the Silver Spring, Md., company out of the project by moving it to Petersburg.”
Yet, Urban One told the publication it remains committed to pursuing a second ballot initiative for a $600 million casino in Virginia’s state capital. How serious is Urban One? If necessary, “it will pursue litigation in tandem with Virginia’s capital city to overcome a state budget amendment aimed at sidelining the project.”
The statement from Urban One comes after last week’s approval of Virginia’s state budget by the General Assembly. It includes an amendment expressly preventing the City of Richmond from holding a second referendum until November 2023. The amendment’s passage came even as a judge released an order allowing the new initiative to remain on the ballot for the City of Richmond in the November 2022 election.
Why push the second referendum back until November 2023? The Washington Business Journal says it’s part of an alternative proposal which would permit a feasibility study for a Petersburg, Va., casino resort. This, however, would not involve Urban One in any way. State Sen. Joe Morrissey confirmed to the Richmond Times-Dispatch that Petersburg would be designated for a casino, the state’s fifth.
Urban One is ready to fight. “We will partner with the City of Richmond, including through litigation, to ensure that the people of Richmond have the final say on what happens in their community and that the rule of law is protected,” it said.
