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

  1. #11
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    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"
    The difference here is that what we have ar enot Venture Capital folks but plain old Investment Bankers. VCs work like oil wildcatters, and they spend hoping to strike it rich with that one well out of ten that comes in big. They know that new ventures will burn capital for years.

    Investment bankers are more like lenders, packaging debt for higher risk investors while often keeping a stake themselves. When they see a deal going sour, if there is a prospect of recovery of all or part of the investment, they will provide more cash in the hopes of saving the original funds.
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  2. #12
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    If iHeart goes out and all stations owned by iHeart goes silent, it will totally cause a radio station "massacre" (not just a suicide in this situation).

    Also, how is it that people think that this will be the last year of the iHR Music Awards and Music Festival, despite both of the events being a great success, just because of iHeart's debt problem?

  3. #13
    Quote Originally Posted by Jonathan7157 View Post
    If iHeart goes out and all stations owned by iHeart goes silent, it will totally cause a radio station "massacre" (not just a suicide in this situation).
    No, they won't. If iHeart files Chapter 11, that means reorganization of the debt, and all stations will remain on the air. If they file Chapter 7, that means that the company's assets will be sold off to pay creditors, and will cease to exist. The stations will be sold as part of those assets, but probably few, if any, will have to shut down. The former is more likely.
    We have to save the Earth! It's the only planet with football and beer.

  4. #14
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    Quote Originally Posted by Jonathan7157 View Post
    If iHeart goes out and all stations owned by iHeart goes silent, it will totally cause a radio station "massacre" (not just a suicide in this situation).
    The stations are not going off the air. iHeart and the lenders are playing "chicken" to see who gives in first. The lenders don't want to take a haircut, iHeart threatens Chapter 11 (where the unsecured lenders lose it all). Eventually they will find a point where each is less unhappy.

    Even if they go Chapter 11, the stations will continue to operate and the average listener will not notice a difference. The changes are all "back room" moves.
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  5. #15
    Here in Vegas at NAB, lot's of talk about IHeart's next move. Whatever that is, a lot of really good stations at potentially fire-sale prices. I heard that most air and production talent are being RIF'ed in small and mid market IHeart stations.

  6. #16
    Quote Originally Posted by TheBigA View Post
    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.
    There could certainly be money to be made. It's just a matter of buying at the right price. You can make money at anything if you correctly buy something for less than its intrinsic value. The time to buy is when few people do.

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