Deals
New Suitors May Come Calling After iHeart and Clear Channel Get Divorced
- The split will end iHeart’s raids on Clear Channel’s cash
- Independence could mean both companies become takeover targets
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IHeartMedia Inc. and Clear Channel Outdoor Holdings Inc. finalized their long-anticipated divorce that will see Clear Channel spun out when iHeart emerges from bankruptcy early next year.
The separation frees Clear Channel from constant demands for cash from private equity-backed iHeartMedia, which used the outdoor advertising company to shore up its own balance sheet. IHeartMedia in turn emerges as a leaner company that can capitalize on its dominance in the radio broadcasting space -- and as an attractive target for a potential buyer. Clear Channel, too, has attracted potential suitors.