InsideRadio is reporting iHeartMedia has requested approval from U.S. Bankruptcy Court to buy all of the membership interests in a company but the specifics of the deal are being kept confidential.
The publicly available version of the filing doesn’t name the company or the deal price or include the purchase agreement, dated Aug. 29, which iHeart is seeking permission to consummate.
This type of filing is fairly routine in Chapter 11 cases – under bankruptcy law, all significant business decisions must be approved by the court.
While the blacked-out version of the filing doesn’t say what type of business the asset operates in, it provides some clues that suggest it may be digital-related.
“The Debtors’ anticipation that digital would be the key long-term platform for the growth of the Debtors’ stations and other audio assets led to the creation of the iHeartRadio digital service and application,” the company says in the Motion For An Order filed Friday afternoon.
“Since then, the iHeartRadio digital service has steadily increased in listenership, added revenue opportunities, and allowed the Debtors’ to stay abreast of new device innovation. That strategic decision allowed the Debtors to develop a major digital presence and enabled the Debtors to utilize a ‘masterbrand’ strategy for all of their radio stations. The Debtors’ digital platform is also powering an initiative that allows the Debtors to tap into the digital advertising marketplace and the data-driven buying of today’s media.”
The next roughly 40 lines of the filing are redacted, presumably where the company explains how the purchase would benefit their businesses.
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