iHeartMedia shares jump 8% as it explores podcast business sale to support stock price
Key Facts
iHeartMedia shares rose 8% on Wednesday, November 11, 2026, after Investing.com reported, citing Bloomberg, that the company is exploring a sale of some or all of its podcast businesses to raise cash and support its stock price. The report said the company had held discussions with investment bank Moelis & Co. and potential investors about a possible sale. The move remains at the exploratory and discussion stage, according to the report, with no agreement or completed transaction announced. The move comes as the podcast unit grows revenue, while the company's adjusted earnings declined in the third quarter. IHRT shares closed at $0.619 on November 10, according to EL7 data.
Podcast revenue reached $173.7 million in the third quarter of 2026, up 24.4% year over year, according to the company's results. iHeartMedia attributed the growth mainly to continued increases in advertiser demand for podcasts. Investing.com's report put the unit's quarterly revenue at $174 million and its annual growth at 24%, rounded figures compared with those reported by the company. The performance places podcasting among the businesses that expanded revenue, as the company looks for liquidity through a possible sale of some or all of the unit's businesses. The report did not give a target sale value or details about specific assets.
At the group level, iHeartMedia reported consolidated revenue of $1.03 billion in the third quarter, up 3.3% from a year earlier. But adjusted earnings before interest, taxes, depreciation and amortization were $170 million, compared with $205 million in the third quarter of 2025. In the Multiplatform Group, this measure fell 43% to $68 million, while the adjusted earnings margin was 12.1%. Free cash flow was negative $10 million, compared with negative $33 million in the same period a year earlier. The results highlight a divergence between podcast growth and the pressures on profitability and cash flow recorded by the company and some of its businesses.
The company had $140 million in cash and total available liquidity of $416 million on September 30, 2026, according to its earnings release. The company also reported consolidated revenue of $977 million in the second quarter, up 4.7% year over year, while adjusted EBITDA was $152 million, compared with $156 million in the second quarter of 2025. The two periods' results provide context for the trajectory of revenue and earnings ahead of the third-quarter results, while the report on a possible sale focuses on raising cash and supporting the stock price. In April 2026, the stock rose 14% after a report of preliminary merger talks with Sirius XM, with a note at the time that a deal was not assured. The stock then fell 3% in May after a report that merger talks had stopped, with no agreement reached between the two parties at that time.
The company forecast that consolidated revenue in the fourth quarter of 2026 would rise at a mid-single-digit rate, and that consolidated adjusted EBITDA would range between $135 million and $185 million. It also said it expects to establish a separate reporting segment for podcasts starting in 2027, giving investors a clearer view of its financial performance. In the company's release, President and Chief Operating Officer Rich Bressler said: "We believe many of the revenue challenges we face are addressable." The company added that it expects to generate about $400 million in digital revenue in 2027, including about $100 million in incremental digital broadcast revenue. These plans put separate disclosure of podcast performance among the company's next steps, while the report did not specify a timing or terms for a possible sale.