iHeartMedia Facing Reorganization Pressures

Much interesting news on the iHeartMedia front already in the new year. The wildly overleveraged conglomerate ended 2015 with an announcement that it hoped to convince some of its shareholders to swap debt they hold against the company for stock. It’s assumed iHeart is still on track to try and float this proposal later this spring.

However, it would seem that some shareholders would like to take matters into their own hands. Just days after iHeart announced its swap-plan, the New York Post reported that several large stockholders planned to pressure the company to devote nearly $200 million this month toward debt reduction. This would shave off less than 1% of the $21+ billion the company owes, though it would be a small step toward ameliorating what one unnamed banker calls “clearly not a sustainable capital structure.” Read More

Radio Stocks on the Dollar Menu

Many industry-watchers have been fixated on the travails of Cumulus Media, which ousted its founding family earlier this year and replaced them with new management backed by the private-capital firms that now control the company. It hasn’t yet resulted in a massive turnaround for Cumulus stock, which is up about ten cents or so from its lowest low earlier this fall. Still, that values the country’s second largest radio conglomerate at a paltry $82 million and change — you can now pick up a few shares of Cumulus for a dollar and still have change left over for a gumball.

But Cumulus is not the only company now trading under a buck. There’s also Emmis Communications — the primary driver behind the NextRadio application and a major innovator in the HD Radio space — whose shares are now trading at just 62 cents, triggering a delisting warning from NASDAQ. Just three months ago, Emmis stock was worth $1.42 per share; a decade ago, the stock was worth 100 times more than it is today. Read More

HD Proponents Seek Protection for “No New Spectrum”

An interesting trial-balloon was floated last month in Radio World. In it, John Kean, one of the founding employees of NPR Labs (who was let go in a reshuffle this past August) suggested that the FCC’s spectrum allocation rules be revised to better “protect” FM-HD Radio sideband signals.

Before going any further, it’s best to cover some history. HD Radio was adopted by the FCC in 2000 primarily on the premise that the system used “no new spectrum.” In fact, FM-HD signals double the spectral footprint of FM stations — but HD’s proponents got around this by appropriating fallow spectrum the FCC leaves between stations as the stations’ own allocation. Read More