iHeartMedia Inc. has formally turned down a $1.16 billion bid from John Malone’s Liberty Media Corp., but other talks are continuing as the company navigates its way through bankruptcy.
Bloomberg reports Liberty officially withdrew its bid June 15 after being informed that its offer for a 40 percent stake wasn’t enough to satisfy the company or its senior creditors, iHM said in court filings Thursday.
The broadcaster still has “active conversations with other interested parties” and remains “willing to continue dialogue with Liberty,” iHM said. “It is possible that such efforts result in the debtors obtaining a higher or better offer.”
The pursuit of iHM adds to a media-merger frenzy, as cable and telecom operators look to boost flagging growth by adding content providers.
iHM collapsed into bankruptcy this year after a 2008 leveraged buyout overloaded the company with debt that topped $20 billion. But it still ranks as the No. 1 U.S. operator of conventional radio stations, with 850 outlets and stars such as Rush Limbaugh, Ryan Seacrest and Sean Hannity. Based in San Antonio, Texas, iHM also owns an online music streaming service, a live entertainment division and outdoor billboard advertising.
Greg Maffei, Liberty’s chief executive officer, has repeatedly expressed interest in a deal for parts of iHeart and has raised the possibility of a higher bid, citing benefits of combining iHM’s radio unit with SiriusXM Holdings Inc. and Pandora Media Inc.
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