Streaming music provider iHeartMedia files Chapter 11 bankruptcy

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.


source: iHeartMedia

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5 Comments

1. libra89

Posts: 2290; Member since: Apr 15, 2016

Wow...

3. Scott93274

Posts: 6040; Member since: Aug 06, 2013

Wow indeed.

2. Scott93274

Posts: 6040; Member since: Aug 06, 2013

Wow, I had no idea they were even in debt, but $20 billion?!!??!? I don't use their services though. ... A playlist of up to 40 songs? I have a playlist on Google Play Music that's 1,981 songs in size. 40 song limit seems like a joke. My brother also complained about them not too long ago for supposedly removing their Cast feature unless you pay for a subscription. That decision was essentially shooting themselves in the foot.

4. toukale

Posts: 641; Member since: Jun 10, 2015

The streaming music business is not a good one. It can't be your only/main business or you will not survive long term. it's the reason I doubt Spotify will remain as is long term, they can't shake those label contracts and those contracts will not get cheaper overtime, only more expensive. What works well in tech is the ability to scale to lower your costs, that is not the case with streaming music. Every new users cost the same as the first one.

5. apple-rulz

Posts: 2186; Member since: Dec 27, 2016

That a shame, I used them a little and thought they were pretty decent.

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