What Happened?
- Huge Debt
- Weak Revenue
- 2008 Recession
- A Decade of Losses
- Digital Platforms
iHeartMedia is filing for Chapter 11. That means they want to halve the debt load down to $10 Billion.
In Connecticut, iHeartMedia owns 9 stations including KISS, The River and Country 92.5.
Perhaps they paid too much when they bought all these stations?
Inflated Value
In 2004, a decent FM signal was selling for $20 million in the Hartford Market. We were looking for a signal at that time to split our news and classical formats. The price was too high for us to move forward. The price was inflated because of demand and a hot market driven in part by Clear Channel buying up available frequencies. We found that servicing the debt would have been too big of a load. Looking back, it was the right decision.
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