iHeartMedia Denies Reports of Podcast Business Sale
iHeartMedia issued a denial Wednesday regarding unconfirmed reports that it plans to sell its podcast business unit.
Company Rejects Sale Rumors
A spokesperson for iHeartMedia disputed accounts from Bloomberg suggesting the audio company discussed selling its podcast network. The report claimed talks with investment bank Moelis & Co were underway to raise cash and boost stock prices. iHeartMedia stated it has no plan to sell because podcasting is a core strategic growth engine. The company highlighted unmatched scale, premium talent, and strong financial performance as reasons to retain the unit.
Financial Performance and Stock
The report emerged while iHeartMedia shares dropped 65 percent over five days before spiking 16 percent Wednesday. Podcasting revenue reached $174 million for the past quarter, representing a 24.6 percent increase compared to the prior year. This unit ranked third by weekly reach in the United States according to latest Edison research data. In contrast, total adjusted profits dropped by 17 percent compared to last year, reaching $170.5 million.
CEO Cites Industry Headwinds
CEO Bob Pittman attributed challenges to ongoing industry and macroeconomic revenue headwinds affecting the broader business. He noted lower political advertising revenue for radio and delayed spending until after the election occurred. Company leaders revealed intentions to separate the podcasting division into a distinct reporting segment no later than 2027. This separation aims to make it easier for investors to value all four company segments fully.
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