Shares of African American-centric media company Urban One Inc. (NASDAQ:UONE) (NASDAQ:UONEK) surged more than 29% in the regular trading session on Thursday and further gained 7.4% in the after-hours session.
What Happened: Urban One likely benefited from fast-food giant McDonald’s Corp.’s (NYSE:MCD) announcement that it will increase its national advertising spending in Black, Hispanic, Asian, women and LGBTQ-owned media platforms from 4% to 10% between 2021 and 2024.
In addition, McDonald’s said it will forge new multi-year partnerships with diverse-owned media companies.
Urban One also said in a regulatory filing that the City of Richmond, Virginia, has selected its wholly-owned subsidiary RVA Entertainment Holdings, LLC (RVAEH) as the city’s preferred casino-gaming operator to develop and operate a casino resort in Richmond, to be named ONE Casino + Resort. This is subject to the citizens of the city approving a referendum that is anticipated to be held in November 2021.
See Also: McDonald’s Boosts Advertising In Diverse-Owned Media: What You Need To Know
Why It Matters: Urban One is a media company that primarily targets Black Americans and urban consumers in the U.S. The Company owns TV One, LLC, a television network serving more than 59 million households.
Urban One is seen as a potential beneficiary of McDonald’s increased investment in diverse-owned companies. In addition, the proposed resort in Richmond will be the first casino in the U.S. under Black ownership.
Price Action: UONE shares closed 29.2% higher in Thursday’s regular trading session at $4.60 and further rose 7.4% in the after-hours session to $4.94.
UONEK shares closed almost 59.1% higher in the regular trading session at $9.56 and further rose almost 1.4% in the after-hours session to $9.69.
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