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Thread: Marketwatch: iHeart Radio Parent Warns it May Not Survive Another Yearl

  1. #1

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    Marketwatch: iHeart Radio Parent Warns it May Not Survive Another Yearl

    The old-radio-guy Facebook groups are all abuzz about this article, with another round of predictions that IHeart will be sold piece by piece, and pretty soon we'll all be re-employed as 60 year old rock jocks. I have the party is premature.

    http://www.marketwatch.com/story/ihe...4-21-121035436

  2. #2
    In fairness to the old guys, if iHeart were to be sold off piecewise, there would probably be quite a number of properties available that some modestly wealthy folks could use as a playtoy.
    "Its music what makes a radio station, and at Live FM, we play the last music around."
    After receiving that copy, I quit the VO industry.

  3. #3
    I know a guy in Idaho who actually is a 75-year old Oldies DJ. Makes a pretty good living at it too.
    Illegitimi non carborundum

  4. #4
    Quote Originally Posted by PTBoardOp94 View Post
    In fairness to the old guys, if iHeart were to be sold off piecewise, there would probably be quite a number of properties available that some modestly wealthy folks could use as a playtoy.
    They don't have to wait. There are hundreds on the market now. iHeart still have a bunch in their Aloha Trust for sale.

    The reality is that no one is rushing out to buy radio stations. If so, Jeff Bezos would be the first in line. Instead he bought the Washington Post.

  5. #5

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    I keep hearing that there are people waiting to buy radio stations to make them live and local again, but they don't seem to be buying any that are available.
    Is there a chance of a GM style bailout? I can't see the FCC letting hundreds of stations; especially big signals in big markets, going silent waiting for buyers that will never materialize.

  6. #6
    Quote Originally Posted by gr8oldies View Post
    Is there a chance of a GM style bailout? I can't see the FCC letting hundreds of stations; especially big signals in big markets, going silent waiting for buyers that will never materialize.
    The feds can't buy radio stations. The reality is if iHeart goes belly up, the big signals in the big markets will get gobbled up quickly. They own most of the most profitable and highest rated radio stations in the country. The problem iHeart and Cumulus both have are all those small market, small signal stations that nobody wants. Except that guy outside Knoxville playing oldies.

    I've always said that the smartest thing iHeart did was start their streaming platform. That added at least $1 billion of value to the company at a time when radio stations were losing value. The solution for iHeart is to let a Chinese company buy it. No profitable company in the US is interested in radio. The most successful media companies, like Disney, NBC, and CBS, have sold radio. If media companies don't see radio are part of their business, who's left? Certainly not technology companies.
    Last edited by TheBigA; 04-22-2017 at 06:39 PM.

  7. #7
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    Quote Originally Posted by gr8oldies View Post
    I keep hearing that there are people waiting to buy radio stations to make them live and local again, but they don't seem to be buying any that are available.
    Is there a chance of a GM style bailout? I can't see the FCC letting hundreds of stations; especially big signals in big markets, going silent waiting for buyers that will never materialize.
    There is nobody with money waiting to buy radio stations to make them "live and local".

    A GM style buyout in the larger markets would require extensive financing. The biggest such deal to date was Summit, which is concentrated in markets ranked under #50.

    It would seem that the best chance for creditors is to look for a Chapter 11 reorganization.

    In either case, but more so with a Chapter 7 action, the victim is the industry. The know-nothing mass market media will call it the death of radio. They will ignore the fact that iHeart's issues stem from the effects of the recession and the introduction of the PPM even more than the increasing interest in new media. They will ignore the fact that most radio groups are profitable, and some are growing.

    The unprofitable streaming services (meaning "All of them") will say that they are the future and the future is now. And they will line up at the doors of VC companies for a new round of financing so they can sustain the burn rate.
    Last edited by DavidEduardo; 04-23-2017 at 12:16 AM.
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  8. #8
    What one needs to do is ask why the company included this message in their SEC filing. The fact is during the past year, the company has made an effort to re-organize its debts in a public and co-operative way, and they've been met with opposition from within. The opposition has taken the company to court several times already. This is expensive and annoying, and hasn't led to anything useful or productive.

    So my theory is the company wants to make it clear that investors and creditors need to get serious about solving these issues, or the company will have no choice, and everyone will lose.

  9. #9

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    Always interesting how companies like those can lose millions, and still have VC companies saying "here, have another few million"



    Quote Originally Posted by DavidEduardo View Post


    There is nobody with money waiting to buy radio stations to make them "live and local".

    A GM style buyout in the larger markets would require extensive financing. The biggest such deal to date was Summit, which is concentrated in markets ranked under #50.

    It would seem that the best chance for creditors is to look for a Chapter 11 reorganization.

    In either case, but moreso with a Chapter 7 action, the victim is the industry. The know-nothing mass market media will call it the death of radio. They will ignore the fact that iHeart's issues stem from the effects of the recession and the introduction of the PPM even more than the increasing interest in new media. They will ignore the fact that most radio groups are profitable, and some are growing.

    The unprofitable streaming services (meaning "All of them") will say that they are the future and the future is now. And they will line up at the doors of VC companies for a new round of financing so they can sustain the burn rate.

  10. #10
    Quote Originally Posted by gr8oldies View Post
    Always interesting how companies like those can lose millions, and still have VC companies saying "here, have another few million"
    But when they hit, they hit big. Just not with radio. Pandora is looking for more cash now. Spotify's IPO has been delayed.

    Then there's Lew Dickey, who is apparently building a war chest for some new purchases. I saw where some investors are showing him a billion. With a B.

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