Sign up for our newsletter and get a curated list of the top trending stories and exclusive rewards every day.

Trending Topics

Get the MTL Blog app

Download on the App StoreGet it on Google Play

iHeartMedia Officially Files For Bankruptcy

Over 850 radio stations are at risk.
iHeartMedia Officially Files For Bankruptcy

Everyone knows that the name of the game, these days, is streaming.

iHeartMedia has filed for chapter 11 bankruptcy. The giant radio/media company has been plagued by falling revenues and piles of debt.

The holding company of iHeartRadio Inc. is the biggest operator of radio stations in the U.S and Canada. They operate on over 850 radio stations.

READ ALSO: It's Official, Mike Wheeler From "Stranger Things" Is Coming To Montreal

iHeartRadio has seen advertising revenues drop immensely to major tech companies. Rivals like Spotify and Pandora are taking over the radio game.

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

Bob Pittman, iHeartMedia's Chairman and CEO

The company is facing $20 billion in debt which had compounded roughly over the past ten years.

  • Executives expect the agreement with owners to offload $10 billion of that debt for a financial restructuring will reduce debt enough to keep the company operating with the cash it has on hand.
  • Day-to-day operations of its businesses, at least for now, are not expected to be dramatically affected.

iHeartMedia/iHeartRadio's business has taken a hit from audio streamers like Spotify and Pandora

  • The company launched a subscription service last year with Napster, which has been successful, but not enough to save the company from the mounting debt.
  • Its terrestrial radio business, the largest in the country, also struggled to maintain advertising revenues to offset mounting debt costs.


The company claims they have enough money to go through Chapter 11 bankruptcy

The San Antonia based iHeartMedia bills themselves as a multi-platform media company, and are best known for operation over 850 radio stations.

The bankruptcy filing comes as Spotify prepares for its much anticipated $1 billion listing on the New York Stock Exchange.

While the San Antonio-based company bills itself as a multi-platform media company, it is best known for operating about 850 radio stations across the United States. It also owns iHeartRadio's music streaming service, a popular concert business, and a majority stake in Clear Channel Outdoor.

The company has struggled with falling revenue in recent years, as it competed with streaming rivals like Spotify and Pandora.

The decision of chapter 11 bankruptcy comes off the heels of multiple extensions since March 1st, their deadline was 11:59 PM, March 14.

More from MTL Blog

Comments 💬

Our comment section is a place to promote self-expression, freedom of speech and positivity. We encourage discussion and debate, but our pages must remain a safe space where everyone feels comfortable and the environment is respectful.

In order to make this possible, we monitor comments to keep spam, hate speech, violence, and vulgarity off our pages. Comments are moderated according to our Community Guidelines.

Please note that Narcity Media does not endorse the opinions expressed in the comment section of an article. Narcity Media has the right to remove comments, ban or suspend any user without notice, or close a story’s comment section at any time.

First and last names will appear with each comment and the use of pseudonyms is prohibited. By commenting, you acknowledge that Narcity Media has the right to use & distribute your content across our properties.