IHeartMedia, U.S.’s Largest Radio Broadcaster, Files for Bankruptcy

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IHeartRadio’s parent company, iHeartMedia, filed for bankruptcy protection in an attempt to restructure part of the $20 billion debt load that has burdened it since a leveraged buyout a decade ago, on the eve of the 2008 recession. The company announced that it had reached agreements with creditors to reduce its debt by more than $10 billion. It said it would continue to operate its stations during the process. 

According to court filings, iHeartMedia, known as Clear Channel Communications until 2014, paid $1.4 billion in 2017 in interest on its debts. Its media division, which includes the broadcast stations, a popular music app and a unit that syndicates shows by Rush Limbaugh, Sean Hannity and others, had $3.6 billion in revenue and $735 million in operating income. Counting its global business in outdoor billboards, which is not part of the bankruptcy, the company had $6.2 billion in revenue over all.

The bankruptcy is the culmination of iHeartMedia’s yearslong dance with its creditors; a final phase, long expected by analysts, began in Feb when the company skipped a $106 million interest payment. It is also the latest and most high-profile shift in the tumultuous radio business, which has struggled to retain advertising dollars and compete with streaming services like Spotify and Pandora.


IHeartMedia, U.S.’s Largest Radio Broadcaster, Files for Bankruptcy