The radio industry is abuzz over a plan revealed Monday (2/26) that would see Liberty Media, controlled by John Malone, and its Sirius XM, obtain a combined 40% minority stake in iHeartMedia as part of a reorganization offer presented to key iHeart lenders and noteholders.
But, is Liberty’s lasso to the nation’s largest radio station owner/operator — saddled with $20 billion in debt and now indirectly dealing with a sexual harassment claim against Ryan Seacrest — simply too late?
That’s what an unnamed source tells the nation’s biggest tabloid newspaper.
According to the New York Post, “Malone’s 11th-hour bid for embattled radio giant iHeartMedia is likely to fall on deaf ears, a source close to the situation said.”
Why? Because the Liberty Media deal undervalues the owner of some 850 radio stations, the anonymous source told the Post.
If iHeart opts to ignore Liberty’s offer, the unnamed Post tattler says iHeart will file for Chapter 11 reorganization on March 3; this is three days later than others have suggested in private conversations with RBR+TVBR.
And, it appears, a bankruptcy filing is all but assured, the anonymous tipster tells the tabloid.
“The timing would have been better had this offer come one month ago,” the unknown quotster tells the paper.