iHM Memo Rallies Staff, Reorganization Hearing Delayed

RADIO ONLINE | Thursday, December 6, 2018

iHeartMedia Chairman/CEO Bob Pittman and President, COO and CFO Rich Bressler have sent a memo to its employees in advance of the company's emergence from Chapter 11 bankruptcy on how to interpret press and public reaction to the company's restructuring. In the memo, they write, "there continues to be a lot of press around our restructuring so we wanted to send you an update to give you some perspective on it." They went on to cite a number of facts to bolster the company's image. These included:

• Being "the number one audio company in America" with "greater reach than any media property in the U.S., including Facebook and Google," or abount 91% of Americans each month
• An audience "twice the size of the next radio competitor and seven times their size in digital audience" and twice the "social footprint" of Netflix
• "The number one commercial podcasting company by a wide margin"
• "A consumer master brand that stands alone in the audio space"
• "A unique position on smart speakers"
• "The only audio company that has a significant presence on Youtube and Snapchat"
• Data analytics, programmatic, and attribution tools equal to digital players

The memo concluded, "When you hear that people are interested in iHeartMedia in any form, take it as a compliment. It's validation of our strong operating business and the unique position we have in the media business, and how our value increases once we have fixed our debt issues. We are truly a one of a kind company, and let's never forget that we've gotten here through hard work and great thinking from you and everyone else on our team."

In related news, a stipulation submitted to U.S. Bankruptcy Court reveals that iHM and major creditor Wilmington Savings Fund Society are still working out iHM's emergence from Chapter 11. As a result, the hearing date for the reorganization plan was moved from December 11 to a future unspecified date.