iHeartRadio parent warns it may not survive another year

[endicom]

Market Watch
Ciara Linnane
Apr. 22, 2017



iHeartMedia Inc., the biggest operator of radio stations in the U.S. and headed by Bob Pittman of MTV fame, plans to include language in its next quarterly report warning investors that it may not survive another year.

The company IHRT, -4.84%  , which owns iHeartRadio and billboard advertising company Clear Channel Outdoor Holdings CCO, -0.85% said it continues to expect cash flow to be negative and is uncertain as to whether it will be able to refinance or extend the maturities of some of its borrowings, according to a regulatory filing.

The company has almost $350 million of debt coming due this year, part of a massive $20 billion debt load it took on as part of a $24 billion leveraged buyout of then Clear Channel Communications Inc. by private-equity firms Bain Capital and Thomas H. Lee Partners in 2008. It has another $8.3 billion of debt coming due in 2019.

More... http://www.marketwatch.com/story/iheartradio-parent-warns-it-may-not-survive-another-year-2017-04-21-121035436

[jmyrlefuller]

For those unaware, this is also the company that carries Rush, Hannity and Glenn Beck.

[Frank Cannon]

This is terrible news. I listen to Real Oldies on Iheart all the time....

[mirraflake]

There was an article online  in the last few weeks saying Clear Channel was behind paying vendors and employees were slow in getting paid.

People are now going online for their news and information or buying Sirius etc

Radio is another form of brick and mortar going bye bye

[endicom]

For those unaware, this is also the company that carries Rush, Hannity and Glenn Beck.

Yeah, that's why I posted this. If iHeart goes under then I guess the assets will be sold off to someone. Maybe Rush will be owned by the Russians and Hannity the PRC. ;-)

[Wingnut]

I was never a fan of Clear Channel.   So me no care if it is chopped up and sold off piece meal by the Bankruptcy judge. 

What say my other DJ or radio brothers think?

@txradioguy

[GtHawk]

I listen to all of two stations the short time I am in the car, one is Unforgettable L.A. which plays old standards from the likes of Sinatra, Martin, Como, Etc. and the local Classical station. I'm a boring old fart! So I really don't care, at home I listen to Pandora which plays a mix that I set. I only wonder who they will sell the stations to if they fail since the usual market that buys up stations, Hispanics, may not be growing for a while.

[geronl]

They spent $20 billion on a radio and billboards company?

They must be insane.

[Weird Tolkienish Figure]

Iheartradio is something I have used from time to time, seems like a no brainer to make money from it. Radio stations should be fighting to get their airplay over the internet, as a lot of listening is moving in that direction.

[thackney]

Yeah, that's why I posted this. If iHeart goes under then I guess the assets will be sold off to someone. Maybe Rush will be owned by the Russians and Hannity the PRC. ;-)

iHeart doesn't own Rush, Hannity & Beck. The local stations owned by iHeart often carry those broadcasts, but not exclusively.

[mountaineer]

People are now going online for their news and information or buying Sirius etc

Radio is another form of brick and mortar going bye bye

Not all of us. I'm sitting at work right now listening to a local radio station. When I get in the car I'll turn on the radio (local stations). I don't listen to music online and I don't have a smartphone on which to download iTunes or any of that sort of thing.

 Maybe I'm the one "going bye bye" along with brick and mortar. 

[endicom]

iHeart doesn't own Rush, Hannity & Beck. The local stations owned by iHeart often carry those broadcasts, but not exclusively.

Yeah, I know. But iHeart is much like their ISP. Except that losing your ISP means that you pretty easily sign up with another while finding a new radio carrier, if necessary, is anything but easy.

Maybe this will be a big deal or maybe it won't but it should be interesting.

[txradioguy]

I was never a fan of Clear Channel.   So me no care if it is chopped up and sold off piece meal by the Bankruptcy judge. 

What say my other DJ or radio brothers think?

@txradioguy

@Wingnut

Clear Channel (a.k.a. The Borg) and Cumulus going away wouldn't break many radio DJ's hearts...including mine.  The completely ruined an leverage small market DJ's ability to move to another station in town and get better money.  They had people in Austin trying to Program music for Midland.

Real radio...real GOOD radio doesn't work like that.  Clear Channel and others never understood live and local.  They thought they knew better...now it looks like they are going to pay the price for it.

[Wingnut]

@Wingnut

Clear Channel (a.k.a. The Borg) and Cumulus going away wouldn't break many radio DJ's hearts...including mine.  The completely ruined an leverage small market DJ's ability to move to another station in town and get better money.  They had people in Austin trying to Program music for Midland.

Real radio...real GOOD radio doesn't work like that.  Clear Channel and others never understood live and local.  They thought they knew better...now it looks like they are going to pay the price for it.

Thanks! 

[txradioguy]

iHeart doesn't own Rush, Hannity & Beck. The local stations owned by iHeart often carry those broadcasts, but not exclusively.

Rush and Sean's syndication deal is through Premiere Radio which IS owned by Clear Channel.  So if they go into bankruptcy it might have some effect.

Levin is Cumulus and they are having troubles of their own as well.

[geronl]

They have an online app, not that it's doing them much good.

[txradioguy]

They have an online app, not that it's doing them much good.

Nope it's not.  Earlier this year IIRC they made most of what used to cost you money free to anyone who downloaded it.

[Weird Tolkienish Figure]

They have an online app, not that it's doing them much good.

Rush used to say that content is king, I actually do agree with him on that.

Most CC is a bunch of repetitive garbage, whether it's the conservative AM screamers, or vapid pop stations.

Maybe if they put something that people wanted to listen to on the air... 

[jmyrlefuller]

Iheartradio is something I have used from time to time, seems like a no brainer to make money from it. Radio stations should be fighting to get their airplay over the internet, as a lot of listening is moving in that direction.

They probably are.

The problem iHeart faces is that those AM and FM radio stations they own, their predecessor (Clear Channel) paid WAY (and I mean WAY) too much money for them and it turned out, as the value of radio licenses declined, they couldn't sell off stations fast enough, or make enough money from those licenses, to cover their loans.