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iHeartRadio parent warns it may not survive another year

TheRover

TheRover

http://www.marketwatch.com/story/ih...not-survive-another-year-2017-04-21-121035436

I always thought IHeart was livin' too Large for their own britches!!

The more they had these contests and underwrote these big concert events, the more I knew they how desperate they were. There's normal "growing" of a brand, and then there's this over-hyped "expansion on steroids" that I knew wasn't sustainable for them. Everyone wants to be be THE next big thing... But, in this digital world, there WILL NEVER be another dominate thing, like MTV. But the greedy choose to self-delude themselves with irrational exuberance!!!
 
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This has nothing to do with contests or concerts or even living too large. It's a battle between them and their lenders.

BTW, iHeart is one of the few companies voluntarily paying a label performance royalty.
 
TheRover said:
The more they had these contests and underwrote these big concert events, the more I knew they how desperate they were.[/COLOR]
Click to expand...

The events and concerts are huge profit-makers. They have sponsors who pay to be involved with big-name local or national events. An example is KIIS-FM's "Wango Tango" in Los Angeles which has made millions for that particular station over the years. In fact, it brought in such a big amount of money that broadcasters long ago petitioned Miller-Kaplan to have stations report revenue with non-broadcast income kept separate.

Music stations have been doing contests right back to the first Top 40 station in 1952![/FONT]
 
i wonder if Sinclair Broadcasting Group will try to buyout IHeartMedia next since it seems they are in the process of turning into Clear Channel 2.0 but in the TV business instead of Radio. i think they would be willing to grow their fast growing empire on top of the pending deals with Tribune Media and Boten Media to buy them out as well as past deals where they bought Ring Of Honor Wrestling and the Tennis Channel in the last few years.
 
From Market Watch May 5, 2017

iHeartRadio costs jump in latest quarter, adding to suspicion its days are numbered

iHeartMedia is struggling to bring down the costs of its massive $20 billion debt burden as revenues continue to fall

iHeartMedia Inc. on Thursday followed through with its promise to include “going concern” language in its next quarterly earnings, with the warning in its first-quarter report of “substantial doubt” as to its ability to survive another year.

The biggest operator of radio stations in the U.S., iHeart, is struggling with a $20 billion debt burden 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. The company is struggling to refinance or extend maturities on some of its borrowings and is currently pushing creditors to participate in a number of proposed exchange offers.

http://www.marketwatch.com/story/ih...to-suspicion-its-days-are-numbered-2017-05-04
 
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