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iHeartMedia and SiriusXM Explore Merger Talks

The talks signal a push to build a bigger audio business to take on tech platforms.

Overview

  • The two audio companies, which were reported Friday to be in early-stage discussions, have not confirmed the talks or outlined a structure for a deal.
  • Sources in Variety and The Hollywood Reporter say Irving Azoff and Apollo Global Management are advising, while a single report in TheWrap suggested Azoff could try to buy both companies.
  • Investors reacted after the news Friday as iHeartMedia shares jumped about 35 percent and SiriusXM fell roughly 5 percent.
  • A combined group would span about 860 U.S. radio stations and roughly 33 million satellite subscribers and could face antitrust scrutiny in podcast advertising and audio distribution.
  • Upcoming earnings calls for SiriusXM on April 30 and iHeartMedia on May 11 could offer signals on strategy or the likelihood of a deal.