Pittman: Reaction To Name Change Is Positive

Bob Pittman On FBN

Bob Pittman, the CEO of the company once known as Clear Channel and now known as iHeartMedia told Fox Business News that the company “outgrew its name” and noted that advertisers are totally cool with the new corporate handle, reports rbr.com.

His remarks came during an interview with Liz Claman of Fox Business Network.

According to Pittman, the company’s vast universe of listeners already tends to think of it as iHeart.

Pittman told FBN, “The company outgrew its name, we had a proud heritage under Clear Channel but I think all the stuff we’ve done in creating the multiplatform between digital and our events and what actually we’re doing is broadcasting and social has really said, you know, we need another name.

Asked by FBN about advertiser reaction he said, “…the advertisers I think love it, we’ve talked to a number of them already who are weighing in and think this is great because it kind of reflects who we are and what we can do for them.”

Meanwhile, The LA Times reports the company has posted annual net losses since its leveraged buyout. Last year, the company posted a loss of $606.9 million, compared with a loss of $424.5 million in 2012.

Subsidiary Clear Channel Communications Inc. last week sold $750 million of 9% notes due in 2022 to repay $741 million in loans that were set to mature in 2016.

Pittman, who has run the company since late 2011, said he's optimistic about his firm's prospects.

"We're in pretty good shape," Pittman said. "We have been substantially working on our debt structure. You're always working on the capital structure with any company at any size."

Observers called the name change a bold move, but questioned what it would ultimately achieve, according to Crain's.

"IHeart gives them the fireworks; the terrestrial radio group gives them the cash," said industry analyst Robert Unmacht. "They're hoping to make it look better in a nice package."