iHeartMedia has withdrawn its IPO in favor of a NASDAQ listing.
Instead of the expected IPO, iHeartMedia has received approval from NASDAQ to be listed and traded on the stock exchange. The Class A stock is expected to be listed on July 18th, and its symbol will be “IHRT.”
iHeartMedia originally planned to raise capital with an initial public offering (IPO), but executives, investors, and financial analysts have reversed course, believing, it would seem, that listing the brand directly on the stock exchange would prove more beneficial in the long term.
The decision was likely influenced by the stock market’s recent success.
The last three or so years have brought with them immense stock-related profits, and more recently, June has proven to be the best month for stocks since 1938, when the market was recovering from the turbulence of the Great Depression. The first half of 2019 has been the most lucrative half-year the S&P 500 has posted in over two decades, since 1997.
Additionally, iHeartMedia, which owns nearly 850 radio stations, was banking on an IPO to reduce the strain and spending implications of their former $20 billion debt. However, some careful restructuring has worked to eliminate much of this debt, and without the need for immediate liquid capital, a debut on the exchange seems more appealing.
iHeartMedia is based out of Texas and was founded, as fans know it today, 11 years ago (having existed in various forms since 1972). In 2017, the company earned more than six billion dollars, and at the time of writing, nearly 20,000 individuals are employed by iHeartMedia.
Financial experts seem split on how profitable this maneuver will be for iHeartMedia, and most industry professionals have indicated that the market’s initial reception will provide useful information concerning the near-future success for iHeartMedia.
In the meantime, fans can continue listening, and potential investors can get their wallets ready for IHRT’s exchange debut.