A possible SiriusXM-iHeartMedia merger would be the latest ominous sign for radio

By Lukas I. Alpert

The potential tie-up would create an advertising behemoth that could help the companies forestall declines as terrestrial-radio listeners increasingly shift to streaming platforms and podcasts

A merger between SiriusXM and iHeartMedia would create an advertising and podcasting giant but would likely do little to fundamentally change the companies' fortunes amid a broader shift to streaming.

The argument behind a proposed merger of radio giants SiriusXM Holdings (SIRI) and iHeartMedia (IHRT) is that bigger is better. But with listeners increasingly shifting to streaming and podcasting, the potential deal is being viewed more as a defensive move intended to buy time.

The early-stage discussions about a tie-up, first reported late Friday by Bloomberg, could lead to the creation of an advertising behemoth with large footprints across terrestrial and satellite radio.

It also would marry the formidable podcasting menus both companies have worked hard to amass - including hit shows like Alex Cooper's "Call Her Daddy," "Smartless" and "Things You Should Know." Together, the two would form the largest podcast company in the country, with listeners having gravitated in large numbers to the format.

But those benefits paper over the fact that both traditional and satellite radio are declining, as streaming services like Spotify (SPOT) and Apple Music (AAPL) increasingly dominate the landscape. There has also been a shift in audience lately toward video podcasts, which have benefited services like YouTube (GOOGL) (GOOG) to the detriment of companies like SiriusXM.

See: NBC dethroned YouTube in February as ratings king. Here's how it did it.

The reported deal would likely do little to fundamentally change that trajectory but might serve to help SiriusXM and iHeartMedia maintain their market positions for longer.

"The financial benefits of this transaction are small," analyst Jason Bazinet of Citi Research wrote in a note to clients. "An acquisition of iHeart is not thesis changing."

SiriusXM shares slipped 0.2% on Monday. Shares of iHeartMedia fell about 3%.

A spokeswoman for iHeartMedia said the company won't "comment on rumors or speculation." A message sent to a representative for SiriusXM wasn't immediately returned.

SiriusXM is still a sizable business, but its subscriber numbers have been in decline for years. In 2020, the company reported having 34.3 million subscribers - but that number had fallen to 33 million by the end of 2025, with the figure declining each year in between.

By contrast, streaming leader Spotify said it had 751 million subscribers globally at the end of last year.

SiriusXM has also seen its market capitalization fall to just under $9 billion from an all-time high of $34.2 billion in 2018.

Things have been no easier for iHeartMedia, which emerged from a complicated bankruptcy in 2019. The company, which owns 860 radio stations across the U.S., reported a net loss of $472 million last year, after losing just over $1 billion in 2024.

That comes as a recent survey by Jacobs Media showed that the percentage of Americans who said they regularly listened to broadcast radio had fallen from 77% a decade ago to 54% in 2026. The number who said they listened to digital radio rose from 20% to 44% over the same time frame.

The spokeswoman for iHeartMedia said the company remains the number one media company by reach in the U.S., reaching 9 in 10 Americans every month.

"Audio accounts for about 31% of a consumer's media time, and broadcast radio accounts for a majority (61%) of that time, whereas ad-supported streaming is 18%, and podcasts are 21%," she added in a statement.

-Lukas I. Alpert

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04-27-26 1715ET