iHeartMedia board reshuffle as Gerstner steps down, Millard nominated

NEW YORK - iHeartMedia, Inc. (NASDAQ: IHRT), a leading audio company in the United States, announced a change in its board composition today. Brad Gerstner, a board member since 2019, will not seek re-election and will conclude his board service. The company has nominated Robert Millard as his potential replacement, with the election scheduled for the upcoming Annual Meeting of Stockholders on May 13. According to InvestingPro data, the company faces significant financial challenges, with a substantial debt burden of $5.86 billion and negative earnings per share of -$6.68 over the last twelve months.

Gerstner, the founder and CEO of Altimeter Capital, cited time constraints due to his commitments to Altimeter and his philanthropic work as the reason for his departure. During his tenure, Gerstner’s technology insights were instrumental in guiding iHeartMedia through technology transitions to capitalize on revenue opportunities in a data-driven market. The company has maintained modest revenue growth of 2.76% in the last twelve months, though InvestingPro analysis indicates the stock remains volatile with a beta of 1.79, having declined nearly 10% in the past week alone.

Bob Pittman, iHeartMedia CEO and Chairman, expressed gratitude for Gerstner’s contributions, particularly in areas of technology foresight that have shaped the company’s strategic direction. Pittman also welcomed the nomination of Robert Millard, anticipating that Millard’s extensive experience in business, finance, and strategic planning will bring valuable perspectives to the board.

Millard’s background includes directorship at Evercore, co-founding and chairing L3 Technologies, and leadership roles at L3Harris Technologies. His previous positions also include chairmanship at the MIT Corporation and the MIT Investment Management Company endowment board, as well as various senior roles at Lehman Brothers.

iHeartMedia reaches nine out of ten Americans monthly and is recognized as the top audio company in the country. It operates across multiple platforms, including over 860 live broadcast stations and its digital audio group, which features a leading podcasting business and the iHeartRadio digital service. Despite its market reach, financial metrics from InvestingPro show the company maintains a healthy current ratio of 1.56, though analysts project continued challenges with profitability in the coming year. Get access to 8 more exclusive ProTips and comprehensive analysis through InvestingPro’s detailed research reports.

The announcement of the board changes is based on a press release statement. The company’s shareholders will have the opportunity to vote on Millard’s nomination at the meeting in May.

In other recent news, iHeartMedia reported a 4.8% increase in fourth-quarter 2024 revenue, reaching $1.118 billion. This figure, however, fell short of the company’s expectations and analyst forecasts from Guggenheim, which had anticipated $1.163 billion. The company’s adjusted EBITDA for the same period was $246 million, below the anticipated $290 million. Looking forward, iHeartMedia expects a low-single-digit revenue decline for the first quarter of 2025, with adjusted EBITDA projected between $100 million and $110 million. Guggenheim has adjusted its price target for iHeartMedia’s stock to $4.50, maintaining a Buy rating despite the lower-than-expected financial performance. Additionally, iHeartMedia announced the resignation of Jordan R. Fasbender, Executive Vice President and Chief Legal Officer, effective around April 1, 2025. The company is actively seeking her successor to ensure a smooth transition in leadership. These developments come as iHeartMedia continues to navigate the evolving media landscape with a focus on maintaining operational efficiency.

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