iHeartMedia Files For IPO
• As iHeartMedia prepares to emerge from its yearlong Chapter 11 bankruptcy restructuring, the company has filed for an IPO with the Securities and Exchange Commission to list its Class A common shares, signaling a return to the stock markets after over a decade under private ownership.
As the New York Times reports, “The move is meant to mark a financial comeback for iHeartMedia, whose bankruptcy restructuring plan was approved in January and whose 848 live broadcast stations make it the biggest radio broadcaster in the country. But it also represents a crucial moment for the company to argue that it remains relevant in the age of Spotify and streaming music. In its filing, iHeartMedia argues that broadcast radio is still important: It provides ‘companionship’ as opposed to ‘music collection,’ giving listeners a separate experience from music streaming and a bond to a bigger community.”
“Radio continues to offer consumers something different in the form of curated, personality-led audio,” the company says in its filing. “The medium is able to offer influencers a word-of-mouth style conversation, which propels audience engagement and connection in a very effective way.”
Under the proposal that received court approval, iHeartMedia cut its debt from $16 billion to $5.75 billion. Under the reorganization plan, iHeartMedia would also spin off its corporate sibling, Clear Channel Outdoor. As Reuters reports, iHeartMedia did not disclose the size of share offering, or set a price range. It set a placeholder amount of $100 million to indicate the size of the IPO, and said it expects to use net proceeds from the IPO to pay off its debt.
