Report: iHM Bankruptcy, Expect A Major Selloff of Stations

RADIO ONLINE | Thursday, March 22, 2018 | 2:03pm CT

iHeartMedia

According to a report from Forbes, when iHeartMedia emerges from the prearranged bankruptcy worked out last week with creditors -- it will be a very different company -- and a lot leaner. The publication says we can expect to see a dramatic shedding of radio stations, likely hundreds, many at rock-bottom prices. "A station selloff is all but assured for a variety of reasons," say Forbes.

iHeartMedia currently owns over 850 stations, and Forbes reports that some number of them are under-performing, or they're simply in markets where the company sees no future. "It just makes sense for the company to dump those stations and focus on its most profitable stations and markets where it sees growth potential," wrote the publication. Even so, "Valuations for radio stations-what they fetch when put up for sale -- have been tumbling in recent years, and they could well be headed for a nose dive."

Forbes says a changed business model is necessary. "The new-old model is local, local, local -- stations deeply involved in their communities with local air talent that shows up at events and plays the music local listeners want. The DJs read the news. They talk about last Friday night's high school football game. It's the only way traditional radio can compete with digital."