iHeartMedia, considered the biggest radio company in the United States, is exploring investments with several companies, including Apple, before having to file a reorganization plan with a bankruptcy court, the Financial Times said. The company has $20 billion in debt and filed for bankruptcy in March.
Sources told the Financial Times that Apple is one of several investors that have been considered, and iHeartMedia is looking for an equity stake involving thousands of dollars. One source said the deal could emerge as a marketing partnership rather than a direct injection of cash into the company.
According to the Financial Times, if a deal does happen between Apple and iHeartRadio, it could favor Apple Music's Beats 1, bringing it to radio. Beats 1 is currently only available for the Apple Music and iTunes apps. The report says Apple Music's Beats 1 shows run by DJs like Zane Lowe haven't grown the service's user base in the way Apple had hoped.
It's worth mentioning that Apple has already acquired a few music companies, including the music app Shazam, and the acquisition of Beats, which laid the groundwork for Apple Music.
As for iHeartRadio, it still holds sway over the radio industry, with over 850 stations and still commands considerable power with exposure to big-name events, including the iHeartRadio Music Awards.
Apple declined to comment on the matter.
Source: The Verge
