The U.S. Bankruptcy Court judge overseeing iHeartMedia‘s Chapter 11 restructuring plan has before it a request from the nation’s top owner of radio stations to approve a purchase agreement.
What does iHeart want to buy? We don’t know. The details of the 27-page request submitted Aug. 31 were redacted.
“To remain a leader in the diversified media and entertainment business,” iHeart explained to the Houston-based court that it “routinely and proactively” positions itself “for new, innovative market opportunities” that complement its existing lines of business.
In spring 2018, iHeart recognized an opportunity to purchase a business — one whose name was stricken from the public record.
But, the purchase of the mystery company “is important” to iHeart’s participation in the fast-growing market.
Over the past several months, “arm’s length negotiations” were held. At their conclusion, a purchase price was agreed upon.
“Entering into the agreement to acquire the company presents the debtors with an important opportunity to capitalize on potential future growth in the market,” iHeart pleads.
But, what is the company? Some believe US Traffic Network (USTN), the beleaguered entity that is pulling out of the U.S. radio market due to severe economic problems that began under its former Australia-based owners, may be the entity iHeart is eyeing.
However, that’s just speculation as of Sept. 4, leaving many guessing as to what iHeart wants to buy as it works with a bankruptcy court judge on eliminating much of its billions of dollars in debt.
What we do know is that the entity iHeart wants to buy is focused on digital media solutions.
As of last trade (10:58am Eastern), iHeart’s shares are at $0.486.