×

Liberty Media Withdraws $1.16 Billion Offer for iHeartMedia Stake

Liberty Media, the parent company of Sirius XM, has formally withdrawn its offer to acquire 40% of iHeartMedia, the bankrupt radio conglomerate, for $1.16 billion.

The announcement came as iHeartMedia informed the bankruptcy court on Thursday that neither the company nor its senior creditors thought the transaction was worth pursuing. IHeartMedia did not rule out some other arrangement, noting that combining the businesses could create $500 million in operational synergies.

But it cited “pro forma corporate governance issues, the ability to achieve operational synergies in a minority interest structure, and purchase price” as reasons for rejecting the deal.

In a statement on Friday, however, Liberty said it had dropped out “after reviewing results which were below expectations and negatively impacted our initial estimates of value.”

“We remain open to future discussions as iHeart proceeds with its reorganization,” the company said.

In its statement to the court, iHeart said it is also open to a continuing dialogue with Liberty, and with other potential partners.

“It is possible that such efforts result in the Debtors obtaining a higher or better offer,” iHeart said.

IHeartMedia declared bankruptcy in March, bowing to the burden of $20 billion in debt. The company holds more than 850 radio stations, making it by far the nation’s largest radio company.

More Music

  • Dave NavarroGuitar Legends For Heroes Benefit,

    Primary Wave Music Publishing Acquires Stake in Dave Navarro's Catalog

    Primary Wave Music Publishing has acquired an interest in Dave Navarro’s music publishing catalog, master revenue streams, and writer’s share royalties, the company announced today. Navarro is credited as a songwriter on such hit songs as Jane’s Addiction “Been Caught Stealing” and “Jane Says” as well as the Red Hot Chili Peppers’ “Aeroplane.” Said the [...]

  • This photo shows composer Hans Zimmer

    Hans Zimmer on Recreating Iconic Score: 'The Lion King' 'Brought People Together'

    Composer Hans Zimmer is seated at the mixing board at the Sony scoring stage, head bobbing to the music being performed by 107 musicians just a few yards away. He’s wearing a vintage “Lion King World Tour” T-shirt, frayed at the collar. On the giant screen behind the orchestra, two lions are bounding across the [...]

  • Dreamville Dreamers doc

    J. Cole's Watchful Eye, All-Nighters and Weed: Inside Dreamville's 'Revenge' Doc

    Having the No. 1 project in the country is old hat for J. Cole, but the instant success of Dreamville’s highly-anticipated “Revenge of the Dreamers III” collection, which features collaborations with more than 25 artists, writers and producers (among them: Cozz, Omen, Bas, J.I.D., EarthGang and Ari Lennox), took many by surprise. The first installment [...]

  • Kanye Kim Kardashian Selling Bel Air

    Kanye West, Kim Kardashian Lobbied Trump for A$AP Rocky's Release, Source Confirms

    Kanye West and Kim Kardashian lobbied President Trump to help release A$AP Rocky from jail in Sweden, a source close to the situation confirms to Variety. The news was first reported by TMZ. A$AP Rocky (real name: Rakim Myers) has been behind bars in the country since July 2 after being involved in an altercation [...]

  • Woodstock 50 Applies for Vernon Downs

    Woodstock 50 Applies for Vernon Downs Permit Yet Again

    For better or worse, Woodstock 50 isn’t giving up on Vernon Downs, despite being rejected twice already: The producers have applied for another permit to hold the festival at Vernon Downs, according to the Utica Observer Dispatch. Town Attorney Vincent Rossi confirmed the application was submitted Wednesday. This is the festival’s third application; previous applications [...]

More From Our Brands

Access exclusive content