I have.
If iHeart brass thought these positions were irrelevant to the profits & losses statement, they wouldn't have eliminated them. The P&L drives the stock price.
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Interesting opinion on IHrt stock value
- Thread starter Deleted User
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They have SEC docs going back to 2007. I personally bought/sold shares of iheart few years before the bankruptcy.
The company had a small public portion for a few years that I think was connected to its ownership of Clear Channel Outdoor, which was spun off in the bankruptcy. But the main portion of iHeart became private after 2008.
The iHeart "brass" was not involved. I count a total of 8 people eliminated. They were let go by their market managers. They eliminated them to meet their quarterly numbers. Once again, iHeart is a very decentralized company. Lots and lots of regional and specific market presidents that oversee the operating budgets of their regions. Several regions were totally unaffected, and on the same day the layoffs were reported, the very same company announced the hiring of a regional president and a market VP of Sales.
Here's how Lance summed up the 8 people: " So far we have heard of dismissals from programming, on-air, and digital departments."
apologies, normally use short sections with a link and attribution, but the liink from Yahoo Finance where it was published bypassed the paywall, the Barons link pay walled it,
Thats' why I said it isn't 100% true when you said staffing and stock prices have nothing to do with each other...because they are definitely related. How, when and why can be debated later.
Also, it also doesn't have to be a press release....number of employees vs. revenue, etc...is part of the company profile.
the stock price tanked based upon earnings reports from somewhere...
Your understanding is appreciated.
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That and a downgrade to nearly all traditional ad-supported media shares due to the belief that we are on the cusp of a recession and those industries are the most affected.
I agree...just not in this case. Laying off 8 people from a staff of 18,000 will not have a big effect on P&L.
But could other layoffs follow in the days/weeks to come?
Those are only the people who have gone public. There were additional layoffs last week in some markets, and others potentially still to come.
IHrt has been laying off constantly since what.... somewhere around 2005-ish when the Lee-Bain buyout was happening.... and the found out they overpaid big time for the stations.... It used to be end of the year, then end of quarter, now it happens so often that if they went more than a couple of months without some bloodbath it would be unusual.
Remember, the sale was to be consummated right during the 2008-09 deep recession and Lee-Bain tried to pull out and were obligated to close despite the obvious over-priced deal. Lots of Vulture Capital groups got bitten on the butt by the recession so this was not a unique situation.
I was sure that deal was going to implode, the cost to back out must have been enough to force the sale to consummate.
By the time the closing date came, what the negotiated value was and the real world value was were quite a bit apart
By the time the closing date came, what the negotiated value was and the real world value was were quite a bit apart
That's the headline people read about.
The story they never see is that a lot of those laid off people get rehired. In fact, the Boston PD who was laid off last week has worked for iHeart multiple times at multiple stations and has been laid off several times. He's not the only one. Getting laid off by iHeart is not the end of the line.
All of those stations Lance has worked for are iHeart stations. Lance is a great PD, and if there's an opening somewhere in the system, it's likely he'll get rehired.
Then why not just transfer him from station in market X to station in market Y? Is there a merit badge for the number of times iHeart lays one off and then rehires someone?
There may not be an opening right at this moment. He may want to have the summer off. Who knows? I'm just saying people who get laid off are usually first to get hired once things open back up.
Update on Tim Moore, recently let go from iHeart in New Hampshire, becomes the head of the Maine Association of Broadcasters:
radioink.com
Moore is Their Man - Radio Ink
The Maine Association of Broadcasters has hired veteran broadcaster Tim Moore as its new President/CEO. MAB Board of Directors Chairman David Abel made the announcement Monday which follows the unexpected passing of long-time President/CEO Suzanne Goucher earlier this year.
radioink.com
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