Rush Limbaugh's parent company Iheartmedia formerly ClearChannel was forced into bankruptcy today because of declining revenues.
IHeartMedia, which has struggled with $20 billion of debt and falling revenue at its 858 radio stations, said cash on hand and cash generated from ongoing operations will be sufficient to fund the business during the bankruptcy process. www.reuters.com/...
It should be noted that Bain Capital LLC and Thomas H. Lee Partners bought Clearchannel for $17.9 billion in 2008. The price was high Bain Capital actually had to file lawsuits against 6 banks who were financing the deal who tried to back out because they thought the price was too high.
The buyout firms had agreed to buy Clear Channel for $39.20 per share, but later filed lawsuits in New York and Texas to force six banks to fund the deal. www.reuters.com/...
The private equity firms led a $17.9 billion leveraged buyout of what was then Clear Channel Communications Inc in 2008, just as the buyout boom was fading and as the signs of the financial crisis began to emerge. www.reuters.com/...
If you look at the numbers $17.9 billion was the amount Clear Channel was bought for 9 years and a name change to Iheartmedia later at the time of the bankruptcy Iheartmedia was $20 billion in debt.
That means Iheartmedia got behind on the interest payments and had not paid down any of the principle in 9 years.
Bain Capital like every company going to a bank in this case several banks for a loan had a business plan you give us X amount of dollars and we pay you back plus interest in a certain time.
How do you plan to pay us back the bank asks? Bain replies well Rush Limbaugh is our biggest cash generating asset.
And thats where everyone who boycotted, joined FlushRush, wrote and read articles gets to take a bow. :)
Sure Rush will stay on the air but bankruptcy means they can renegotiate his contract for much less money what he deserves based on the sponsors willing to pay ads on his show brings in, not his audience size, since there is a larger audience willing to boycott Rush’s sponsors
However you slice it Rush drove his employer to bankruptcy by being stupid and hateful. The Right it is evident is willing to lose billions to keep funding Hate Speech lets keep obliging them:)
The Mercer’s and Koch’s investment in Trump seems to have sparked something similar to FlushRush a Democratic Blue Wave based not on us doing much, its based more on the stupid, hateful things that Trump has said/tweeted. I am quite sure the Mercer’s, Koch’s and Putin did not think getting Trump elected would spark a Dem Blue wave thats the opposite of what they wanted.
Lets see if Rush’s current employer John Malone’s Liberty Media Corp is stupid enough to keep Rush on the air.