The iHeartRadio app is the second highest grossing music streamer on Google Play
Saddled with $20 billion in debt, iHeartMedia today announced that it has filed for Chapter 11 bankruptcy protection, and is reorganizing its financial obligations. The company, which streams music online, also owns 850 radio stations and promotes concerts. Under Chapter 11, a company is protected from creditors seeking repayment of debt while it reorganizes. The media giant has reached an agreement in principle with holders of $10 billion of its debt, which will halve iHeartMedia's debt load to $10 billion when it emerges from bankruptcy in the future.
Currently, the iHeartRadio app is available for iOS and Android phones. With the app, you can stream unlimited free music, and listen to several of the company's radio stations. A premium subscription is available for $4.99 on Android and $5.99 on iOS. The paid version gives users unlimited skips, allows them to create a playlist of up to 40 songs, and gives subscribers the ability to save and replay songs from the radio.
Thanks to the Chapter 11 filing, the app will continue to operate as normal. And iHeartMedia adds that it should be able to fund continuing day-to-day operations from cash on hand and cash generated by its ongoing business activities. The company's stock, which trades on NASDAQ under the ticker symbol IHRT is currently trading at 59 cents, up 23%. The shares traded as high as $18.95 in September 2008 shortly after its IPO.
"iHeartMedia has created a highly successful operating business, generating year-over-year revenue growth in each of the last 18 consecutive quarters. 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, and the iHeartRadio master brand that ties together our almost 850 radio stations, our digital platform, our live events, and our 129 million social followers. 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, Chairman and Chief Executive Officer,iHeartMedia