Could Greenville SC iHeart stations be on the market?

[TheBigA]

OK, so how about if iHeartMedia considers a similar move for the Virginia/Carolina region, where they spin their small market stations in the region to the top station managers.

Remember that iHeart is currently offering an equity deal to their lenders. They can't sell off assets without changing the value of the deal. Making that deal attractive is a top priority for their management right now. Selling assets at a loss (and they definitely would be at a loss) would damage the equity. The main value of iHeart, and Pittman has talked about this many times, is their national reach.

Leave iHeart out of this. Stick to one subject.

 

[davideduardo]

OK, so how about if iHeartMedia considers a similar move for the Virginia/Carolina region, where they spin their small market stations in the region to the top station managers.

I would be surprised if there is anyone who is a station manager today that wants to own a station. If they are over 50, they won't risk their savings. If they are younger, they know radio in its present state can not provide an income until retirement. The big companies can migrate to new media, but the smaller players have neither the content nor the resources to do it.

The other issue would be finding small market station managers who have the savings needed to put "skin in the game" in order to get financing on the rest.

On the other hand, those stations are likely cash flowing for iHeart and, as BigA says, would reduce income and have to be sold at a loss, both of which could squash the refinancing via equity positions currently on the table.

 

[miketheradioguy]

Remember that iHeart is currently offering an equity deal to their lenders. They can't sell off assets without changing the value of the deal. Making that deal attractive is a top priority for their management right now. Selling assets at a loss (and they definitely would be at a loss) would damage the equity. The main value of iHeart, and Pittman has talked about this many times, is their national reach.

Leave iHeart out of this. Stick to one subject.

If I had the money to subscribe to Inside Music Media, I wouldn't even discuss anything about iHeartMedia planning to sell radio stations. But you're probably right, if iHeartMedia is working things out with their lenders, then it wouldn't be the right time to discuss any station sale rumors.

 

[miketheradioguy]

I would be surprised if there is anyone who is a station manager today that wants to own a station. If they are over 50, they won't risk their savings. If they are younger, they know radio in its present state can not provide an income until retirement. The big companies can migrate to new media, but the smaller players have neither the content nor the resources to do it.

The other issue would be finding small market station managers who have the savings needed to put "skin in the game" in order to get financing on the rest.

On the other hand, those stations are likely cash flowing for iHeart and, as BigA says, would reduce income and have to be sold at a loss, both of which could squash the refinancing via equity positions currently on the table.

I was thinking that some of the top CBS GMs could form their own broadcasting company out of former Entercom stations similar to what Cox did in 2013. David Field is making "good progress" regarding the divestitures and when the time comes, the new owners will be officially announced.

As for iHeartMedia's potential plans to sell radio stations, I'm just going to settle things with everybody. I have no reason to discuss that issue any further.