iHeartMedia is in no mood to talk about selling its podcast division. A report from Bloomberg claimed the company had held preliminary talks about a sale. However, iHeartMedia fired back quickly and forcefully in a statement to Barrett Media.
Chief Communications Officer Wendy Goldberg left no room for interpretation.
“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,” Goldberg said.
That statement deserves a closer look. Indeed, it says more than a typical corporate denial does. Three details stand out, and each one tells a story.
Why the Silence Matters
First, Goldberg is right that iHeartMedia doesn’t comment on rumors. Earlier this year, speculation swirled that SiriusXM could acquire the company. During that stretch, the folks at iHeart kept their lips tighter than Fort Knox. Nobody leaked a peep.
Because of that history, this response stands out. The company made an exception, and it made the exception emphatic. Of course, a denial isn’t proof of anything.
Still, the tone suggests leadership wants this story to die quickly.
A Prize Asset in a Growing Industry
Second, Goldberg’s claim about scale holds up. iHeart has built the number one podcast publisher in America. By some metrics, it has built the top two podcast publishers. That’s precisely why a sale would tempt a buyer.
Consider the market, too. Podcast advertising continues to grow. Terrestrial radio, meanwhile, continues to contract. Therefore, a buyer would see the biggest player in a rising category as a rare find.
Put simply, iHeart owns the kind of asset plenty of rivals would love to have.
From Fad to Growth Engine
Finally, the note about video podcasting is intriguing. In March of last year, I wrote a column arguing that iHeartMedia was about to miss the boat on video podcasting entirely. At the time, CEO Bob Pittman — in my words, not his — had called video podcasting a fad.
That was only 20 months ago.
Now, iHeartMedia says video is part of its reach and growth potential. I’m not egotistical enough to believe I influenced Pittman’s thinking or any strategy pivot.
Still, it’s noticeable how quickly the media landscape can change.
The Math Doesn’t Support a Sale
Ultimately, I believe iHeartMedia. Nearly 40% of the company’s overall revenue comes from its Digital Audio Group, which includes the podcast division. A sale would hand that revenue to someone else. I don’t know how many companies can afford to give up 40% of their income, but I don’t think iHeart belongs in that camp.
Deals can change, of course. For now, though, the company’s words, its investments and its revenue mix all point in the same direction. iHeart plans to keep podcasting — and to keep growing it.
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