iHeartMedia’s Thin Skin on Corporate Finances

A funny thing happened just hours after I posted last week’s update on iHeartMedia’s dance with bankruptcy earlier this year: I got an e-mail from a PR flack contesting my analysis. But it wasn’t just any flack — it was Wendy Goldberg, iHeart’s chief communications officer. She was displeased with several points I made.

To begin, Goldberg asserted that I had misconstrued the timeline of events surrounding the company’s near-default. Instead, iHeart conducted a pre-emptive strike against “a small group of lenders” who planned to call in some $6 billion of the company’s $20+ billion outstanding debt burden within 60 days. (This would indeed have immediately tipped the company into default.) Secondly, my she called my assertion that this close call, in my words, worried “the market that the conglomerate is just steps away from bankruptcy” was seemingly, in her words, “confused at best, and speculation at worst.”

Finally, Goldberg took umbrage with my contention that iHeartMedia remains near the precipice: “I am assuming this is your own opinion or speculation, and if so you should either couch it as such or remove it.” Read More

iHeartMedia Seeks Pounds of Flesh for Bankruptcy Pressure

After fending off one legal challenge that would’ve sent the company into default, the nation’s largest radio conglomerate now seeks a spot of revenge.

iHeartMedia is heading back to a Texas courtroom in hopes of getting mega-damages out of a consortium of investors who went after the company, serving a notice of default for playing fast and loose with its $20+ billion worth of debt — a strategy which involves iHeart setting up shell companies to repurchase some of the debt it already owes at lower interest rates, while also working to shield some assets from potential creditors. The conglomerate filed suit to stop the default process, and the Bexar County judge sided with iHeart in May. Read More

Bring the Noise (Floor)

In a little-covered meeting earlier this summer, the FCC’s Technological Advisory Council voted to proceed with what could potentially be a controversial study of noise across the electromagnetic spectrum. This two-page PDF outlines the TAC’s proposal and asks several questions about what such a study should cover, and how to go about doing it.

Many FCC-watchers seem pleasantly surprised that the TAC is wading into this mess. The study itself will be broken down along two lines: attempting to quantify interference from intentional and unintentional radiators. Intentional radiators are sources of potential noise that mean to broadcast — think radio and TV stations, wireless routers, and the like. Unintentional radiators are things that emit RF energy (and potential noise) but that is not their primary reason for being — think most electronic devices, older-model LED systems, and whatnot. Read More

NY Broadcasters Try Quantifying Pirates

Tell us something we don’t know: they are pervasive and may outnumber licensed broadcasters in the number one radio market in America.

Meintel, Sgrignoli, & Wallace's magic pirate listening vanThat’s the most notable takeaway from a 103-page report (also embedded at the end of this post) prepared for the New York State Broadcasters’ Association by Maryland-based consulting engineers Meintel, Sgrignoli, & Wallace, who camped out at four locales in the NYC metropolitan area — two in NYC proper and two in New Jersey — earlier this year with a cleverly-camouflaged monitoring van (at right) and basically did FM bandscans.

They picked up 76 pirates on the dial…though they estimate that “there may be more than 100 unauthorized stations” on the air in total. According to the report, this is not the first pirate-survey MS&W has been commissioned for — similar bandscans were conducted in 2012, 2014 and 2015. Compared to last year’s findings, the number of unlicensed broadcasters in Brooklyn alone has increased some 58%, though there’s no way to compare figures since the earlier reports have not been made publicly available. Read More

O’Rielly Goes Pirate-Hunting, is Flabbergasted by Tower

Michael O'RrrrrrrriellyFCC Commissioner Mike O’Rielly, the pinch-headed ideologue who’s tried to make a name for himself by attempting to launch a war on unlicensed broadcasting in America, actually went out into the mean streets of New York City earlier this summer along with field agents to hunt pirate stations.

Speaking to a very receptive audience at the annual conference of the New Jersey Broadcasters’ Association last month, O’Rielly called unlicensed broadcasting “a key area needing significant attention. . .as it represents a very real problem that is growing.”

Claiming that pirate stations “have no legal or moral right to operate,” O’Rielly asserted (again, without evidence) that pirate radio stations are “stealing listeners” from licensed broadcasters, “weakening [their] financial situation and undermining the health of licensed radio stations” supposedly devoted to serving their communities of license. The threat of interference from unlicensed stations also got a shout-out, but that’s apparently become a secondary issue to O’Rielly’s perferred agency mandate to maximize the profits of the radio industry. Read More