| FOR IMMEDIATE RELEASE
WEDNESDAY, JANUARY 27, 1999
TDD (202) 514-1888
MEDIA ONE GROUP-ERIE, LTD ABANDONS EFFORT TO PURCHASE
WASHINGTON, D.C. -- The Department of Justice today announced that Media One Group-Erie Ltd. has abandoned its efforts to purchase two radio stations from Rambaldo Communications Inc., after the Department of Justice expressed concern that the acquisition likely would have resulted in a loss of competition in the Erie, Pennsylvania radio market. Both companies will continue to own and operate the stations that they owned before the deal was abandoned.
Media One is the owner of WRIE-AM, WXKC-FM and WXTA-FM in Erie. Media One proposed to acquire Rambaldo's two Erie stations, WRTS-FM and WRKT-FM. If the deal had been successful, Media One would have controlled well over 50 percent of the radio advertising dollars in the Erie market.
"Had the deal between Media One and Rambaldo been consummated, businesses in the Erie market would likely have paid higher prices for radio advertisements," said Joel I. Klein, Assistant Attorney General in charge of the Department's Antitrust Division. "The abandonment of this deal means that competition in the market will be maintained."
According to industry estimates, Media One's 1997 net revenues were
approximately $2.9 million. Rambaldo's 1997 revenues were approximately