The New York Post is reporting that the offer made by John Malone’s Liberty Media is likely to fail “because it undervalues iHeart’s 850 radio stations.” The Post is quoting a source that says Liberty’s offer values iHeart at $7.5 billion and senior creditors of the company, led by Franklin Resources, believe iHeart is worth 12 percent more, or roughly $8.5 billion.
The source tells the paper that there is a 98 percent chance there will be a bankruptcy and that will likely take place Saturday.
The source tells The Post, “I don’t think Liberty has enough time to get the support they need. Liberty has not even started speaking to key creditors yet to gain their support, the source said. “The timing would have been better had this offer come one month ago.”