A merger between SiriusXM Holdings and iHeartMedia would create the largest advertising and podcasting company in the U.S., combining their extensive radio footprints and popular podcast libraries to help the firms slow their decline amid listeners' shift to streaming platforms.
The early-stage talks, first reported by Bloomberg on Friday, are viewed primarily as a defensive move.
While the deal would make the combined entity bigger, analysts say it would likely do little to reverse the broader industry challenges from competition by Spotify, Apple Music, and video podcast platforms like YouTube, according Marketwatch's Lukus Alpert.
The potential tie-up would marry SiriusXM's satellite radio network with iHeartMedia's 860 terrestrial stations, forming a major advertising behemoth. It would also create the country's largest podcast company by uniting hit shows such as "Call Her Daddy," "Smartless," and "Things You Should Know."
However, both companies face ongoing erosion in their core businesses. Traditional and satellite radio audiences continue to shrink as consumers move to on-demand streaming. A recent Jacobs Media survey found the share of people who regularly listen to broadcast radio dropped from 77% a decade ago to 54% in 2026, while digital radio listening rose from 20% to 44%.
Citi Research analyst Jason Bazinet noted the financial benefits of the transaction would be small, describing an iHeart acquisition as "not thesis changing" for SiriusXM.
SiriusXM shares rose about 1% in midday trading Monday, while iHeartMedia shares gained roughly 4%. iHeartMedia declined to comment on the rumors; SiriusXM did not immediately respond.
SiriusXM remains profitable but has seen steady subscriber losses. Its subscriber base fell from 34.3 million in 2020 to 33 million by the end of 2025. Its market capitalization has dropped from a 2018 peak of $34.2 billion to under $9 billion today. By comparison, Spotify reported 751 million global subscribers at the end of last year.
iHeartMedia, which exited bankruptcy in 2019, reported a net loss of $472 million last year after losing more than $1 billion in 2024.