iHeartMedia Denies It’s Selling the Podcast Empire Behind The Breakfast Club and Black Effect
The biggest Black podcast network in the game is not for sale — at least that’s what iHeartMedia is saying out loud.
Bloomberg reported Wednesday that iHeartMedia, the largest radio station owner in America, has held preliminary talks with investment bank Moelis & Co. and potential investors about selling part — or possibly all — of its podcast business, to raise cash and boost its struggling stock price. The conversations were early, and there’s no guarantee a deal ever happens.
iHeart didn’t let that sit for long. In a statement to The Hollywood Reporter, the company’s chief communications officer, Wendy Goldberg, shut it down: “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.”
So why would anybody think the crown jewel was on the table? Look at the timing. iHeart dropped its third-quarter earnings on Monday: $1.03 billion in revenue, but it missed its own guidance, adjusted earnings fell 17 percent to $170.5 million, and the stock got crushed — down about 65 percent in five days. The one part of the business actually printing money? Podcasting — $174 million last quarter, up 24.6 percent from a year ago, beating the growth the company itself predicted. When Bloomberg’s report landed Wednesday, the stock jumped 16 percent. Wall Street basically announced what that division is worth.
And for the culture, this division is no side project. It’s home to The Breakfast Club — Charlamagne Tha God, DJ Envy and Jess Hilarious — which expanded onto Netflix’s daily live schedule in June, becoming the first daily live program in Netflix history while still running on more than 100 radio stations. It’s home to Charlamagne’s Black Effect Podcast Network, his joint venture with iHeart: 60-plus shows built for Black listeners, from All The Smoke to the Drink Champs Podcast Network N.O.R.E. and DJ EFN launched under Black Effect. This is the machine Charlamagne reportedly signed a five-year, $200 million extension to keep building, according to Forbes.
Why deny it that fast and that hard? Because you don’t sell the only engine that’s growing — and the second buyers think The Breakfast Club and Black Effect are in play, every negotiation on that roster changes. The part worth watching: starting in 2027, iHeart plans to report podcasting as its own standalone business segment. Companies usually break a division out like that when they want everybody to see exactly what it’s worth.
So what y’all think — is iHeart really holding the podcast empire down, or is the denial just what you say while the bankers keep talking?
Reporting: Bloomberg; iHeartMedia statement to The Hollywood Reporter.
