The largest radio company in the United States, iHeartMedia, is in a spot of bother. It has $20 billion in debt and has filed for bankruptcy protection in March. The company has been exploring the possibility of obtaining investments with several companies one of which is said to be Apple. It wants to clinch a deal ahead of filing a reorganization plan with the bankruptcy court.
The Financial Times reports that Apple is one of the companies that’s considering an investment in iHeartMedia. The latter may be willing to part with an equity stake in return for millions of dollars. One source tells the scribe that a deal between the two companies could also look like a marketing partnership instead of a direct cash infusion from Apple.
If a deal is reached between the two companies, it may allow for Apple Music’s Beats 1 to be distributed even further. It’s currently available only through iTunes and Apple Music apps. Getting the station on iHeartRadio gives way to the possibility that it may help significantly grow Apple Music’s user base.
iHeartRadio is a dominant force in the radio industry despite its troubles. It has more than 850 stations and considerable clout with events like the iHeartRadio Music Awards. The company has not yet commented on a potential deal with Apple and the fruit company is tightlipped on the matter as well.
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