×
You will be redirected back to your article in seconds

iHeartMedia Debt Grows, Layoffs Continue Amid Concern for Future

iHeartMedia has released its financial results for the first quarter of 2017 (ending March 31) and its report was not encouraging. “There is substantial doubt about our ability to continue as a going concern for a period of 12 months following the release of the figures,” the report says, with “a substantial amount of [their] cash requirements [slated] for debt-service obligations.”

The news comes in the wake of renewed contracts with superstar on-air personalities like Elvis Duran and Steve Harvey, and the move of Ryan Seacrest to New York to co-host “Live with Kelly and Ryan,” for which the company built brand-new studios at WABC in New York so he can continue his live morning duties at KIIS-FM in Los Angeles.

There have also been widespread layoffs at various iHeartMedia properties in Chicago, Detroit, Tampa, Cleveland, Cincinnati, Jacksonville, Sacramento, New Orleans, Grand Rapids, Florence, and Mobile, Alabama; Biloxi, Mississippi; and Canton, Ohio — which are widely seen as coming in anticipation of what many believe will be a potential bankruptcy filing, even if that possibility has been denied by the company. At press time, 19 employees were known to have been let go.

An iHeartMedia spokesperson, referring to the layoffs, issued the following statement: “Each market constantly looks at all aspects of its business to ensure that it reflects how the best organizations work today so they can continue to operate as effectively and efficiently as possible. This creates some new jobs, and unfortunately, sometimes eliminates others.”

The company has not commented on any speculation about a potential bankruptcy filing.

Still, the company anticipates “having approximately $1.7 billion of cash interest payment obligations for 2017, including maturities totaling $316.5 million, $324 million and $8,369 million in 2017, 2018 and 2019, respectively,” according to this morning’s financial results.

Among those who have confirmed leaving the company are Cincinnati SVP of programming Bo Matthews and VP/market manager Chuck Frederick; WRNO New Orleans program director Jim Fisher; WFUS Tampa music director Launa Phillips; and WFSY Panama City, Florida’s Logan Kelly, among others.

More Biz

  • Phil McIntyre Steps Down as Roc

    Phil McIntyre Steps Down From Roc Nation Management, but Remains Affiliated With Company

    Phil McIntyre has stepped down as president of Roc Nation Management, but his PhilyMack management company remains affiliated with Roc, a source close to the situation tells Variety. PhilyMack, which McIntyre founded in 2006, partnered with Roc Nation in 2015. The source stressed that McIntyre’s role at Roc Nation Management  — whose clients include Rihanna, [...]

  • Harvey Weinstein Trial

    Ben Brafman Drops Out of Harvey Weinstein Rape Case

    Harvey Weinstein has officially parted ways with defense attorney Ben Brafman, releasing a joint statement Thursday announcing the move. Weinstein had clashed with his defense attorney over strategy in his rape and sexual assault case. The pair issued a statement saying their parting was amicable, and that Brafman would cooperate fully with Weinstein’s new attorneys. [...]

  • Netflix - Apple TV

    Netflix Turns in Record Q4 Subscriber Gains, Price Increase Weighs on U.S. Forecast

    Netflix is beating Wall Street expectations for international subscriber growth — but its recently announced price increase in the U.S. may have put a damper on its momentum in the States. For the fourth quarter of 2018, Netflix reported 1.53 million paid net adds in the U.S. and 7.31 million internationally, to end the year [...]

  • Heather Parry Live Nation

    Live Nation Investigation of Heather Parry Also Targets Leakers (EXCLUSIVE)

    Over the past two weeks, the law firm of Paul Hastings LLP has been probing allegations reported by Variety last month that Heather Parry, the head of Live Nation Productions, had verbally abused employees and used offensive language in the workplace. But the lead investigator, Elena Baca, seems to be just as interested in uncovering [...]

  • Leslie Moonves

    Leslie Moonves to Pursue Arbitration for His $120 Million Severance From CBS

    Former CBS Corp. chairman-CEO Leslie Moonves will pursue an arbitration claim to fight CBS for the $120 million severance that he was denied last month when the company’s board of directors determined he was fired for cause. Moonves was ousted in September after multiple women came forward with allegations of sexual misconduct against the longtime [...]

  • A view of the SK Telecom

    Korean OTT Players, SK Telecom Join Forces to Compete Against Netflix

    South Korea’s three major broadcasters KBS, MBC and SBS have joined forces with the country’s leading telecom firm, SK Telecom, to launch a new video streaming platform. The move is regarded as a defensive reaction against the growing influence of foreign competitors, lead by Netflix. The broadcasters already jointly own Pooq, with MBC and SBS [...]

  • David Lubliner Moves to UTA From

    Veteran WME Agent David Lubliner to Join UTA

    William Morris Endeavor agent David Lubliner is departing the company for a post at United Talent Agency, individuals familiar with the move told Variety. The parting of ways was amicable, the insiders added. Lubliner was a veteran in WME’s motion picture literary department. Rumors of his exit had been floating since Hollywood reopened for the new [...]

More From Our Brands

Access exclusive content