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iHeartSiriusXM?

L

luperm

Bloomberg is reporting that IHeartMedia is holding talks about a possible sale to SiriusXM. Talks are preliminary.

I'll put this on the list of things that I would not have expected. IHeart shares are up more than 35% on the news.
Analysts suggest that this is further acknowledgement of radio (satellite and terrestrial) continued loss of market share to podcasts.
 
Bloomberg and The Wrap are reporting someone might be kicking the tires on both companies for a merger.

Legendary music mogul Irving Azoff is in talks to acquire both SiriusXM and iHeartMedia and the merge the companies into a radio giant, according to a person familiar with the situation.

A deal would combine the nation’s largest radio company, iHeartMedia, with satellite radio provider SiriusXM, creating a radio and streaming powerhouse. The talks are ongoing and there’s no guarantee a deal will be reached.
Click to expand...
 
mightynine said:
Bloomberg and The Wrap are reporting someone might be kicking the tires on both companies for a merger.
Click to expand...
Terrestrial radio is in its "twilight years". And satellite radio is not going to grow unless they can compete with the streaming services that offer infinite playlists and even custom, personalized playlists.

This is like a new TV show where The Living Dead associate with The Moribund (radio and satellite, respectively) while the internet audio streams stick stakes in their hearts.
 
luperm said:
Bloomberg is reporting that IHeartMedia is holding talks about a possible sale to SiriusXM. Talks are preliminary.
Click to expand...

Here's the story:


The fact is that Sirius is in bad financial shape. They are about $10 billion in debt. iHeart has $5 billion in debt. Put them together.

One report says Irving Azoff is instigating this. He's got his hands in Live Nation & Ticketmaster. He also manages The Eagles.

This conversation has been going on (on and off) for a long time. The reason Sirius wants iHeart is primarily the streaming platform. But there's a benefit in owning radio stations in that they will get a discount in publishing royalties. I predict that if this happens, they will get sued by BMI and ASCAP.
 
Wonder what becomes on Pandora if this goes through. Personally, as someone with a Pandora account, I wish they, being under the SiriusXM umbrella, had an option to showcase a music channel on there & have an option for those they might not be an SXM sub, to listen to it, if only for a brief period (ala SiriusXM station of the week) to give exposure to not just the music format, but the hosts.
 
If they are able to combine and not get smothered by debt, it doesn't really paint a good picture for the other broadcast groups, many of which are similarly burdened with significant debt and deteriorating underlying assets.
 
luperm said:
If they are able to combine and not get smothered by debt, it doesn't really paint a good picture for the other broadcast groups,
Click to expand...

After you go bankrupt twice, you don't worry anymore about how it looks. You just go forward.

Mediafrog+ said:
SiriusXM already has its own streaming platform. Would the two operate together or cannibalize each other?
Click to expand...

Actually Sirius has TWO streaming platforms. The Sirius app and Pandora. They're both smaller than Spotify.
 
We appear to have two threads on the same subject. Can we please combine?

radiodiscussions.com

IHeartMedia sale to SiriusXM Potential

Bloomberg is reporting that IHeartMedia is holding talks about a possible sale to SiriusXM. Talks are preliminary. I'll put this on the list of things that I would not have expected. IHeart shares are up more than 35% on the news. Analysts suggest that this is further acknowledgement of radio...
radiodiscussions.com radiodiscussions.com
 
davideduardo said:
Terrestrial radio is in its "twilight years". And satellite radio is not going to grow unless they can compete with the streaming services that offer infinite playlists and even custom, personalized playlists.

This is like a new TV show where The Living Dead associate with The Moribund (radio and satellite, respectively) while the internet audio streams stick stakes in their hearts.
Click to expand...
Agreed 100 percent.

This potential transaction seems like a terrible idea for SXM. I think SXM's execs are looking to grow the size of their balance sheet so that they can increase their compensation, long term consequences be damned.

In my opinion, SXM should be more concerned with the fact it is disappearing as a pre installed feature on an increasing number of automobile infotainment systems.

An acquisition of the iHR streaming platform *might* make sense, but why on earth would they want to deal with 860 AM & FM radio stations?
 
MarkW said:
An acquisition of the iHR streaming platform *might* make sense, but why on earth would they want to deal with 860 AM & FM radio stations?
Click to expand...

Two reasons:

The discount on the publishing royalty...

And the ability to convert broadcast radio listeners to one of their platforms.

BTW Clear Channel was an original financial partner in XM 30 years ago. CC saw the value in satellite back then.
 
MarkW said:
Taking on a bunch of radio stations that collectively lose money in order to receive a royalty discount seems like a risky proposition to me.
Click to expand...

Nobody says they have to keep all or any of them. They have five stations in BIA's Top 10.

Do some creative pruning, and you have a profitable company.

The main thing is iHeart's creditors are looking for a way out. This may be a way to transfer the debt to someone else.
 
TheBigA said:
Nobody says they have to keep all or any of them. They have five stations in BIA's Top 10.

Do some creative pruning, and you have a profitable company.

The main thing is iHeart's creditors are looking for a way out. This may be a way to transfer the debt to someone else.
Click to expand...
I certainly agree that iHM's creditors might be very happy if a deal were to transpire.

Flipping 800+ radio stations to another buyer would be difficult. I wouldn't want to be burdened with that task if I were SXM.
 
TheBigA said:
BTW Clear Channel was an original financial partner in XM 30 years ago. CC saw the value in satellite back then.
Click to expand...
A whole bunch of broadcasters were financial partners with XM at the start. HBC was one, too, and my department provided 5 channels of original music formats to them until they decided to eliminate ads on most music channels.
 
Here's RadioInk's take on the story:

radioink.com

Rumor Mill Ablaze With Talk of Possible iHeart/SiriusXM Merger - Radio Ink

Multiple reports broke out late Friday that say media mogul Irving Azoff is exploring the possibility of acquiring both iHeartMedia and SiriusXM.
radioink.com radioink.com

Here's RadioInsight:

radioinsight.com

Bloomberg: iHeartMedia Holding Merger Talks With SiriusXM

Bloomberg reports today that iHeartMedia has begun preliminary merger talks with SiriusXM. The deal would see Liberty Media owned SiriusXM
radioinsight.com radioinsight.com

Variety disputes the report that Azoff would do anything other than advise. They also say Apollo Global is involved:

variety.com

iHeartRadio and SiriusXM in Early Merger Talks, With Irving Azoff and Apollo Advising

IHeartMedia and SiriusXM are in early talks to combine, with Irving Azoff and Apollo Global Management offering to help with any such deal, sources say
variety.com variety.com
 
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