Report: iHeart, SiriusXM to combine?

Possible merger could be driven by increased appetite for podcasts

The merger mania gripping local television and Hollywood is now spreading to the podcasting world. 

Reports surfacing in Bloomberg and The Wrap on Friday that satellite radio company SiriusXM and terrestrial broadcaster iHeartMedia are discussing a possible merger – one that could drastically reshape radio and podcasting.

The Bloomberg report suggested SiriusXM was in serious discussions acquiring iHeartMedia, but could end without any agreement in place. Another report from The Wrap stated that former Ticketmaster CEO and super agent Irvin Azoff is looking to by both companies and merge them.

Sirius and XM merged in 2008; both satellite radio companies stated at the time their companies compete with other audio platforms, including terrestrial radio and on-demand audio content, known as podcasting. Formerly known as Clear Channel, iHeartMedia owns 860 radio stations in the U.S., with six stations (and one in a lease deal with WVON) in Chicago including 93.9 The Lite and 103.5 Kiss FM. 

Both companies have struggled financially over the last decade as SiriusXM has lost subscribers and iHeart is in debt and has filed for bankruptcy in the past.

So why merge? You can point to the rapidly growing demand in podcasting as the platform has landed premium names. SiriusXM has deals with Alex Cooper with her Call Me Daddy podcast and her Unwell channel, which this space profiled last year. iHeart has the very popular Breakfast Club, which is the top-rated Black radio show in the country.

Both companies also have to complete with others, including Spotify and Google’s YouTube. Similar to the Nexstar-Tegna (now on hold by the courts) and Paramount-Warner Bros. mergers, observers are pointing to the growing power of unregulated big tech companies as a reason to scale up, as the Trump Administration has made the environment friendlier to big business, as illustrated by reports of potential mergers have surfaced in other industries, including one between Chicago-based United Airlines and Dallas-based American, though it’s likely it won’t happen. 

SiriusXM and iHeartMedia each have popular apps with tons of streaming content, but it isn’t known how they would integrate with one another should the merger occur. Primarily known as a portal for those who commute in their car, SiriusXM has made a serious push into streaming, targeting those who don’t drive or take public transportation. SiriusXM has over a hundred streaming-only channels on its app.

Recently, iHeart struck a deal to carry TikTok Radio, ending a relationship with SiriusXM. Clear Channel was a financial partner in XM when it originally launched, and had deals to carry their CHR powerhouses WHTZ New York and KIIS Los Angeles on its satellite platform for years, continuing to do so even after Sirius and XM merged.

Both SiriusXM and iHeart declined comment on the reports.