Pittman: Our Next Phase Is Underway

It’s what every person connected to radio said needed to happen. Once Radio’s biggest company got its financial house in order, the entire industry would benefit, investors and advertisers would feel more comfortable.

Nearly nine years ago, Bob Pittman took over the debt filled company when it was still called Clear Channel. On Wednesday he said iHeart is now entering its next phase.

For years, despite decent revenue numbers, iHeart struggled to move the needle south on over $20 billion in debt. It was just too much debt, the interest payments alone were massive. The writing was on the wall, it was just a question of when. That trigger was pulled in March of 2018 when CEO Bob Pittman said this:

“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.”

It took a little over a year, and, sure there were bumps along the way, but is a bankruptcy this massive ever perfect? Not everyone walks away happy in any bankruptcy proceeding. iHeart’s 800 plus stations continued to operate, the company’s big music festivals went on as planned and corporate even spent money, gobbling up How Stuff Works for over $50 million, for example, to bolster their growing podcasting business.

With the separation of Clear Channel outdoor from the company, the final debt reduction for iHeart looks like this: from $16.1 billion to $5.75 billion. That’s quite an accomplishment and that’s what prompted Pittman to say the company now has a capital structure to match its operating business. “iHeartMedia enters this next phase of growth as a multi-platform audio company with a vastly improved financial profile. We are well-positioned to continue to innovate and offer cutting-edge technologies, products and services to our audiences and advertisers. This is a very exciting time for audio, and iHeartMedia will continue to break new ground and unlock new opportunities across all platforms to reach audiences everywhere.”