Posted on 03/15/2018 9:23:40 AM PDT by Enlightened1
fter months of delays, discussions and last-minute attempts to avoid an unfortunate financial necessity, the inevitable has finally happened to one of America’s biggest entertainment companies: iHeartRadio has filed for Chapter 11 bankruptcy.
The radio titan officially filed for protection late on Wednesday, ending speculation that has been swirling for months. The company has been suffering due to more than $20 billion in debt. That load, which has been crippling the entertainment giant for a decade now, is a result of a 2008 leveraged buyout that also saw the company rebrand into the conglomerate the world knows now.
iHeart announced the filing on its press page, stating that the company has “reached an agreement in principle with holders of more than $10 billion of its outstanding debt and its financial sponsors,” and that agreement will reduce its crippling debt by more than $10 billion, effectively cutting it in half. That could be a game-changer for the company, though it still has a long road ahead as the bankruptcy protection proceedings have only just started.
There have been rumors for months that bankruptcy was on its way, and lately, it seemed as if every week some new sign appeared that signaled it was coming sooner than later. The company missed its first interest payment just last month, which seemed to herald that bankruptcy was imminent, though there were plenty of reports about other companies stepping in to offer up cash, either in the form of some kind of loan or for a share of the iHeart empire.
iHeartRadio owns 850 radio stations across the U.S., including many of the most popular outlets in top-tier markets. In addition to ruling traditional radio, the company also runs one of the most popular streaming music platforms in the world...
(Excerpt) Read more at forbes.com ...
Good.
My daughter and her husband just quit their Studio City headquarters a few months ago. But this really surprised me.
Nobody will miss it
I sometimes listen to Rush on iHeart Radio.
Soon you’ll be able to pick-up your own radio station for the price of a gently used sedan.
So does my wife.
Come to think of it, the major local AM station here in Louisville is an iHeart station.
Iheart owns my local sports radio station; I wonder what will happen to it.
iHeart Radio is not going away. It’s restructuring the debt. Day-to-day operations at its radio stations will continue as usual.
I love it....Smooth Jazz WJJZ.
On Friday, November 17, 2006, Clear Channel [former name of iHeart] announced that it was going private and selling off almost one-third of its radio assets, according to The Washington Post and DHM. The buyers, led by Bain Capital Partners and Thomas H. Lee Partners, agreed to pay $26.7 billion for the company. [ed]
Bain sucked the life out of another company.
I try listening to it when the Mets knock off Rush. Probably will do it today. Horrible app!
Pop/mainstream music with a Christian message has become lame. It all sounds the same...over produced and auto tuned.
I was in the truck last week with my son. iHeart was playing on the radio and he asked me to turn it off.
“A guy at work has this station playing all day. It’s the same songs over and over again”.
It’s not going anywhere.................
Umm, how do you get over $20 billion in debt for streaming radio?
The company has been suffering due to more than $20 billion in debt
Hard to believe you can’t borrow your way to prosperity, look how well it has worked for the country with $20 Trillion in debt.
They have a product they can’t limit exclusivity or access to
It’s like having a blackberry selling franchise in Mississippi in August when any fencerow has them for free
Most radio stations have a live stream on their website
As do most content providers like Rush and Laura
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