iHeartMedia (formerly Clear Channel Communications, Inc.) is the largest owner of radio stations around the United States. With a total of 858 radio stations around the United States iHeartMedia has over 20,000 employees (as of the last reported number.) First founded back in 1972 the company was rebranded as iHeartMedia, Inc in 2008.
Now Americans are changing how they watch content and listen to content has put iHeartMedia into a terrible place. To help get iHeartRadio into a more stable position today they filed for bankruptcy to help deal with their $10 billion of debt currently on their books.
“The agreement … is a significant accomplishment, as it allows us to definitively address the more than $20 billion in debt that has burdened our capital structure,” Chief Executive Bob Pittman said.
iHeartRadio is facing new competition from services like Pandora, Amazon Music, Apple Music, Spotify, and more. As Americans move to services that let them listen to what they want when they want fewer are tunning to radio for their music and news.
There is a proposal from Liberty Media to buy a 40% stake in a restructured iHeartMedia for $1.16 billion. This will unite iHeart Radio with Liberty’s Sirius XM Holdings satellite radio service.
iHeartMedia was once seen almost untouchable force in the world of media. This should serve as a warning to everyone from Disney to CBS that as American habits change their once secure stable business can quickly turn upside down.
Source: CNBC
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