SiriusXM is in early-stage discussions to acquire iHeartMedia, a deal that would create an audio giant with a foothold in traditional and satellite radio and podcasts, two people familiar with the discussions said Friday.
If a deal is successful, it would be the culmination of years of speculation about a tie-up. Liberty SiriusXM Group, an affiliate of John Malone’s media empire, once owned significant stakes in both companies. But it eventually sold its stake in iHeartMedia and spun off ownership of SiriusXM into a separate company.
Talks are still in the early stages and no agreement may be reached, the people said, requesting anonymity because the talks are confidential. SiriusXM and iHeartMedia declined to comment. Bloomberg News informed Earlier discussion.
Both companies make their money primarily in traditional broadcast radio and satellite subscriptions. iHeartMedia says it owns more than 860 radio stations across the United States. Sirius says it happened about 33 million Customers till last year.
The companies have complementary businesses, which could make the deal attractive to investors.
SiriusXM and iHeartMedia both have massive audio advertising businesses and relationships with music labels, and both have begun expanding into podcasting. SiriusXM has hit shows like Alex Cooper’s “Call Her Daddy” and “Smartless,” while iHeartMedia’s podcasts include “Las Culturistas” and “Stuff You Should Know.”
The deal could also help offset the decline of traditional radio businesses. However, according to MoffettNathanson, a research firm, SiriusXM has lost more than one million subscribers by 2022, but it has started to regain them.
iHeartMedia shares were up 35 percent at the close of trading Friday, while Sirius shares were down about 5 percent.
In the event of a deal, the combined company’s holdings on traditional and satellite radio could come under scrutiny from antitrust regulators. But executives may argue that the alliance would provide a needed counterweight to Spotify, Apple Music and YouTube, digital giants that dominate smartphone music consumption, one of the people said.
Antitrust authorities under President Trump have been more amenable to mergers than under the Biden administration, and some companies are looking to take advantage of that by betting on bigger deals.
jessica testa Contributed to the reporting.
