IHRT Stock Soars On Merger Talks With Sirius XM: Report

• The talks come as traditional radio operators grapple with intensifying competition from streaming services and declining advertising revenue.
• According to Bloomberg, the combined company will have more than $12 billion in sales. 
• While iHeartMedia is the largest owner and operator of radio stations in the U.S., Sirius XM is a leading satellite radio and audio entertainment company.

iHeartMedia Inc. (IHRT) shares closed up 35% on Friday before slipping 4% after hours following a media report that it is holding preliminary discussions about a possible sale to Sirius XM Holdings Inc (SIRI).

SIRI shares closed down 5% following the news.

Deal Talks

Bloomberg reported on Friday, citing people familiar with the matter, that the talks are at an early stage and might not result in a deal.

The talks come as traditional radio operators grapple with intensifying competition from streaming services and declining advertising revenue. According to Bloomberg, the combined company will have more than $12 billion in sales.

While iHeartMedia is the largest owner and operator of radio stations in the U.S., running hundreds of broadcast stations, Sirius XM is a leading satellite radio and audio entertainment company, delivering subscription-based music, sports, news, and talk channels to millions of vehicles and listeners via satellite, streaming, and connected-car services.

iHeartMedia, burdened by more than $4.5 billion in net debt, has faced persistently weak advertising revenue, leading to repeated rounds of cost cuts, layoffs, and station sales. Sirius XM, while more profitable, has seen slower subscriber growth and pressure on its core satellite business as younger listeners shift to free or lower-cost streaming alternatives such as Spotify and Apple Music.

iHeartMedia reported mixed results for full-year 2025, with revenue essentially flat at approximately $3.86–3.9 billion. The company, however, narrowed its net loss to $472 million from more than $1 billion the prior year. It achieved $150 million in net cost savings during the year and has guided for an additional $100 million in annual savings in 2026, alongside high-single-digit revenue growth.

Sirius XM posted full-year 2025 revenue of $8.56 billion, slightly below the prior year, but delivered net income of $805 million and diluted earnings per share of $2.23.

How Did Retail Traders React?

On Stocktwits, retail sentiment around IHRT rose from ‘neutral’ to ‘extremely bullish’ territory over the past 24 hours, while message volume increased from ‘normal’ to ‘extremely high’ levels.

Meanwhile, sentiment around SIRI stayed within the ‘bullish’ territory over the past 24 hours, while message volume stayed at ‘extremely high’ levels.

While IHRT rose 431% over the past 12 months, SIRI gained 25%. 

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