iHeartMedia denied reports that it is considering a sale of its podcast division after the company’s shares plunged following a third-quarter earnings report that missed analyst expectations.
The podcast unit was recently ranked No. 2 among U.S. publishers and posted a 24% revenue increase in the last quarter, according to the company.
Shares fell as much as 66% during midday trading Tuesday, a day after the earnings call. They recovered 13% by the close of trading Wednesday after Bloomberg reported that iHeart had held preliminary discussions with investment bank Moelis & Co. and potential investors about selling part or all of the podcast business.
Third-quarter revenue rose 3.3% year over year but came in below the $1.07 billion consensus estimate. The company also cut its full-year 2026 adjusted EBITDA guidance to a range of $550 million to $600 million, down from a previous projection of about $800 million.
iHeart President and Chief Operating Officer Rich Bressler said the company expects to begin reporting the podcast division as a separate segment sometime next year. He said the change would provide greater insight into its financial performance and make it easier to value the company’s businesses.
iHeartMedia operates approximately 860 AM and FM radio stations in the United States. The price of its high-yield bond due in May 2029 fell more than 20 cents this week, according to Bloomberg.