iHeartMedia Denies Plans to Sell Podcast Business

IHeartMedia is denying reports that the company is looking to sell its podcast business.

On Wednesday, Bloomberg reported that the audio company has been in discussion with investment bank Moelis & Co and others to possibly sell part of all of its podcast business, which is one of the biggest podcast networks, with shows including Stuff You Should Know, Las Culturistas, The Breakfast Club and more. The sale was positioned as a means for the company, which is the largest U.S. radio station owner, to raise cash and boost its stock price.

A spokesperson for iHeartMedia disputed the account.

“While we don’t generally comment on rumors or speculation, I can tell you that we have no plan to sell our podcasting business. iHeart has built the number one podcast publisher in America, with unmatched scale, premium talent and strong financial performance. Podcasting is a core strategic growth engine for our company, and we continue to invest in expanding its reach and potential, including through video podcasting,” the spokesperson said.

The report came as iHeartMedia’s share price has dropped 65 percent in the past five days. Share prices spiked 16 percent Wednesday after the Bloomberg report.

Podcasting has been a highlight for the company, reporting $174 million in revenue for the past quarter, up 24.6 percent compared to prior year and above guidance. The iHeartPodcast network was the third by weekly reach in the U.S., according to the latest Edison research.

In comparison, IHeart’s overall business missed expectations for adjusted earnings before interest, taxes, depreciation and amortization, with the number falling 17 percent from a year ago to $170.5 million, with lower than expected guidance going forward.

CEO Bob Pittman said the company is facing “ongoing industry and macroeconomic revenue headwinds,” including lower-than-anticipated political advertising revenue for radio and delayed advertising spend until after the election.

On the Monday earnings call, executives also announced plans to break out the podcasting group into its own reporting segment.

“In 2027, we plan to separate our podcasting business from the Digital Audio Group and report them as separate stand-alone segments. This additional granularity is expected to make it easier for the investor community to fully value all four of our segments and our entire company,” Pittman said.