The company did not disclose the number of shares it was offering, or set a price range, but said will have two classes of shares. It just set a placeholder amount of $100 million to indicate the size of the IPO, although that can change.
According to The NY Times, the move is meant to mark a financial comeback for iHeartMedia, which exited bankruptcy protection in January and whose 848 live broadcast stations make it the biggest radio broadcaster in the country. But it also represents a crucial moment for the company to argue that it remains relevant in the age of Spotify and streaming music.
In its filing, iHeartMedia argues that broadcast radio is still important: It provides “companionship” as opposed to “music collection,” giving listeners a separate experience from music streaming and a bond to a bigger community.
“Radio continues to offer consumers something different in the form of curated, personality-led audio,” the company says in its filing. “The medium is able to offer influencers a word-of-mouth style conversation, which propels audience engagement and connection in a very effective way.”
The company estimates that it reaches 275 million listeners per month. By contrast, Spotify said that it had 207 million monthly active users as of year end.
But iHeartMedia adds that it also offers digital broadcasting and 20,000 live local events a year, including concerts headlined by the likes of Cardi B and Ed Sheeran. It has also embraced newer forms of programming, like podcasts.
Under the proposal that received court approval, iHeartMedia cut its debt from $16 billion to $5.75 billion. Under the reorganization plan, iHeartMedia would spin off its corporate sibling, the big billboard advertising business Clear Channel Outdoor.
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