iHeartMedia Inc. will trade up to $10 million worth of advertising inventory for a roughly 5% stake in the publisher of High Times, the 44-year-old marijuana magazine, offering the biggest U.S. radio broadcaster access to the nation’s growing number of cannabis consumers.
The deal, which at current valuation would give iHeart about a 5% stake in Hightimes Holding Corp., provides the publisher with access to the media giant’s radio and outdoor advertising as it gears up to sell shares to the public.
High Times is expected to announce the investment in a filing with Securities and Exchange Commission.
“Cannabis at the end of the day is mainstream,” said High Times Chief Executive Adam Levin. “And iHeart has a huge mainstream appeal.”