Satellite radio company SiriusXM and terrestrial broadcaster iHeartMedia have cooled their discussions centered on a possible merger of their operations, according to a report published over the weekend.
The report, from the New York Times, came several weeks after Bloomberg and The Wrap confirmed the ongoing discussions, which would have paired the country’s only satellite radio broadcaster with the largest owner of AM and FM radio stations.
The talks largely centered on a combination of SiriusXM and iHeartMedia’s digital media and connected advertising businesses, according to a person familiar with the matter. One major unresolved issue involved the amount of stations iHeartMedia was willing to divest in order to secure regulatory approvals for the deal, and which stations would be sold, the person said.
Officially, SiriusXM and iHeartMedia have never confirmed the discussions took place, so there wasn’t anything to refute when news broke that the talks had fizzled out.
iHeartMedia owns or operates more than 860 local AM and FM radio stations across the country. Like other radio broadcasters, the company has experienced turbulence over the past two decades as once-reliable advertising income shifts toward connected media platforms, including streaming music and podcasts.
SiriusXM is best known as the home of radio personality Howard Stern, who joined the company in 2006 and helped the premium audio company earn the business of more than 30 million satellite and streaming radio subscribers.
Both broadcasters have robust digital audio advertising businesses, though competition has intensified over the years as deep-pocketed tech companies like Amazon, Google-owned YouTube, Apple and Spotify work to capture more digital ad revenue for themselves.
