Categories Earnings, Other Industries, Technology
iHeartMedia bankruptcy: new media takes another victim
US radio station giant iHeartMedia (OTC: IHRTC) filed for bankruptcy protection following an agreement in principle with investors to restructure its balance sheet to reduce its debt load.
The company, which reached the agreement with holders of more than $10 billion of its debt, expects to use cash on hand and cash from operations to fund the business during the bankruptcy procedure.
iHeartMedia’s billboard subsidiary, Clear Channel Outdoor Holdings Inc., has not started the Chapter 11 process and its daily operations are expected to continue during the restructuring.
The company, which operates more than 800 radio stations, has been struggling to tackle lower revenues along with more than $20 billion of debt which has put a burden on its capital. iHeart managed to avoid bankruptcy all this time through refinancing and swaps.
iHeart was purchased in 2008 by Thomas H. Lee and Bain Capital, two private equity firms, and has been straddled with massive debt ever since. The company has higher debt payments than sales, and it hopes to emerge from the bankruptcy process with significantly lower debt and more value.
In the world of Google and Facebook, iHeart has been struggling to keep up. Although radio stations still enjoy good reach, they face increasing competition from streaming services like Apple Music and Spotify, and subsequently, sliding ad revenues. Two years ago, iHeart launched two on-demand subscription music streaming services of its own but did not see much of an impact.
Meanwhile, Liberty Media Corp., owner of Sirius XM, is looking to purchase a 40% stake in the restructured company for $1.16 billion.
Most Popular
CCL Earnings: Carnival Corp. Q4 2024 revenue rises 10%
Carnival Corporation & plc. (NYSE: CCL) Friday reported strong revenue growth for the fourth quarter of 2024. The cruise line operator reported a profit for Q4, compared to a loss
Key metrics from Nike’s (NKE) Q2 2025 earnings results
NIKE, Inc. (NYSE: NKE) reported total revenues of $12.4 billion for the second quarter of 2025, down 8% on a reported basis and down 9% on a currency-neutral basis. Net
FDX Earnings: FedEx Q2 2025 adjusted profit increases; revenue dips
Cargo giant FedEx Corporation (NYSE: FDX), which completed an organizational restructuring recently, announced financial results for the second quarter of 2025. Second-quarter earnings, excluding one-off items, were $4.05 per share,
Comments
Comments are closed.