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Another LBO goes bankrupt - iHeartMedia

Posted on 3/15/18 at 1:04 pm
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37105 posts
Posted on 3/15/18 at 1:04 pm
LINK

Has an LBO, ever been successful?

This is just a restructure, but it will be interesting to watch how it goes.
Posted by hungryone
river parishes
Member since Sep 2010
11987 posts
Posted on 3/15/18 at 1:29 pm to
Can't say I'm unhappy about iHeart--a key player in the homogenization of regional radio. Same damn songs in every market. Boring.
Posted by Upperdecker
St. George, LA
Member since Nov 2014
30575 posts
Posted on 3/15/18 at 4:03 pm to
Good good. They suck
Posted by Azazello
Member since Sep 2011
3182 posts
Posted on 3/15/18 at 6:13 pm to
quote:

Has an LBO, ever been successful?


Dell, Hilton, Safeway

I agreed with your premise though, they usually just make management and the PE firm a boatload of money and frick the company in the long run.

So it depends on your definition of "success" because most LBOs are successful depending on where you sit.
This post was edited on 3/15/18 at 6:16 pm
Posted by lynxcat
Member since Jan 2008
24149 posts
Posted on 3/16/18 at 9:32 am to
Agree completely. Those golden parachute clauses are a great way to sail into the sunset.

Unless the combined companies have terrific FCF, I'm not in favor of the LBO method. Straddling a new firm with billions of debt is not a great wedding present.
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