In radio, on the internet and through center-of-attention events such as the 2018 iHeart Radio Music Awards on Mar. 11 where Taylor Swift exposed "Delicate" to the world, parent company iHeartMedia is steward of exciting enterprises in the business of music. Its plan to reduce $10 billion in debt through Chapter 11 restructuring was announced on March 14. Clear Channel Outdoor Holdings is not part of the bankruptcy proceedings and business-as-usual is expected, as the plan goes through U.S. Bankruptcy Court.
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The current chairman/CEO of iHeartMedia is Bob Pittman, a man who started programming radio before he was 20, programmed the original MTV, went on to be MTV Networks' President/CEO, as well as CEO of AOL, Time Warner and other businesses. In a statement accompanying the announcement, he reviewed some of the components of what he described as his successful and impressive operating business.
"We have transformed a traditional broadcast radio company into a true 21st century multi-platform, data-driven, digitally-focused media and entertainment powerhouse with unparalleled reach, products and services now available on more than 200 platforms," said Pittman. "The iHeartRadio master brand … ties together our almost 850 radio stations, our digital platform, our live events, and our 129 million social followers."
Pittman concluded that the proposed Chapter 11 plan should provide the operating business with the right match between debt, operations and growing revenue for the future.
It was 10 years ago that a leveraged buyout saddled iHeartMedia with $20 billion in debt, so reducing the burden by half seems likely to make many operations easier. If their plan proceeds smoothly, they'll be in a better position to continue being a proud part of the changing music ecosystem and landscape.
