Economy

IHeartMedia files for bankruptcy protection

IHeartMedia files for bankruptcy protection

The branding switch to iHeartMedia didn't make the stations in the corporation's roster immune from the same kind of digital-age revenue downturns that have afflicted the Denver Post, which announced thirty layoffs yesterday. Some pinned the blame on "Pittman's ego".

The company will also continue to operate as normal during the bankruptcy.

A spokesperson for parent iHeartMedia said the company does not own stations and has no employees here since the franchise agreement has seen Bell manage Canadian music licensing, marketing and distribution while providing content from Bell properties.

IHeartMedia posted a $95.4 net loss on $1.9B revenues during the nine-month period ended September 30.

The company said it has enough cash to support its operations through Chapter 11 proceedings.

Clear Channel Outdoor didn't file for bankruptcy. iHeartMedia owns a 90% stake in the billboard company.

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While dramatic, the filing is not likely to have much noticeable effect on the company's day-to-day. They're going to pay their bills. The equity holders would keep 5.25% of the company.

That arrangement didn't satisfy creditors, however.

Among creditors is Malone's Liberty Media, which controls satellite radio giant SiriusXM. The move reportedly would've created a unique synergy between iHeartMedia, Pandora, and SiriusXM. These bank loans take the form of long-term debt that can leave companies with little breathing room as the interest payments, and larger debt obligations, begin rolling in.

Shares of the company lost 75% of their value during the second six months of 2015 and have not recovered since. By 2021, the report projected, that figure, for terrestrial broadcast stations, would reach only $16.6 billion, with a 10-year compounded annual growth rate of just 0.425 percent. Clear Channel was not part of the bankruptcy filing.

"What they've done to try to stay afloat is financial engineering". So, are we really surprised to hear the iHeartRadio owner submitted the bankruptcy paperwork today?