iHeartMedia Files for Bankruptcy

iHeartRadio+has+stations+set+all+around+the+country%2C+including+San+Francisco+and+Los+Angeles.

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iHeartRadio has stations set all around the country, including San Francisco and Los Angeles.

In a press release issued the morning of March 15, iHeartMedia announced it is filing for chapter 11 bankruptcy. The company is doing so in an effort to clear more than $10 billion of the debt it has accumulated over the last decade.

iHeartMedia has been one of the more dominant audio companies in the world. It has services on over 200 platforms, 850 radio stations, and about 129 million social media followers.

Despite its status as a media giant, the company is  more than $20 billion in debt. Despite being sunk in debt, iHeartMedia chairman and Chief Executive Officer Bob Pittman assured the company will run its business as usual.

“The agreement we announced today is a significant accomplishment, as it allows us to definitively address the more than $20 billion in debt that has burdened our capital structure,” Pittman said.

“Achieving a capital structure that finally matches our impressive operating business will further enhance iHeartMedia’s position as America’s #1 audio company.”

A CNN report stated “[iHeartMedia] has been struggling to get out from under a massive debt load it took on as part of a leveraged buyout of billboard company Clear Channel Outdoor in 2008.”

In the official statement issued by iHeartMedia, however, the company claims “Clear Channel Outdoor Holdings, Inc. and its subsidiaries did not commence Chapter 11 proceedings.”

Based off both statements, it’s clear that there were multiple reasons for the debt iHeartMedia has accumulated.

iHeartMedia filed for bankruptcy just days after the company held its iHeartRadio Music Awards. Tons of stars showed up to the award show,  including performers Cardi B, DJ Khaled, Ed Sheeran and Eminem among others. Chance the Rapper, Diddy and Pharrell were some of the other big names that appeared.

With stars of that status showing up to their awards show, the radio giant is sure to continue its services for now. iHeartMedia’s rival company, Cumulus Media also filed for bankruptcy in December 2017, however.

Both iHeartMedia’s and Cumulus’ troubles may be signs that traditional radio stations are in danger. The rise of internet-based services like Apple Radio, Spotify and SoundCloud have made it easier for listeners to access songs they want, when they want.

The radio giant, iHeartMedia still made it clear that it has no intentions of slowing down their operations. The company says it “will continue to operate the business in the ordinary course as a leading global multi-platform media, entertainment  and data company.”

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