×
You will be redirected back to your article in seconds

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Liberty Media, the parent company of Sirius XM, has formally withdrawn its offer to acquire 40% of iHeartMedia, the bankrupt radio conglomerate, for $1.16 billion.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

  • Camila Cabello Romance album cover

    Camila Cabello's 'Romance': Album Review

    At 22, Camila Cabello is still in the prime age range to be a student. Although it’s unlikely she’ll be taking an arena-tour hiatus to be going back to school any time soon, “Romance,” her second solo album, makes it clear that she’s been keeping up on her studies. To be specific, it feels like [...]

  • Weeknd

    Watch The Weeknd Perform 'Heartless' on 'The Late Show with Stephen Colbert'

    The Weeknd channeled major Michael Jackson and Prince vibes for his first ever performance of recent single “Heartless” on “The Late Show with Stephen Colbert.” Dressed in a red retro suit and dancing in the backstage hallways of the Ed Sullivan Theater, the three-time Grammy-Award winner had some fun with the impromptu music video, his [...]

  • Photo Finish

    Growing Shaed: How 2019's Top Alternative Hit Was Launched, 'Doubters' Be Damned

    The most-played song on alternative radio this year is “Trampoline” by Shaed, an indie-pop band from the D.C. area that’s signed to Photo Finish Records and distributed by Caroline. With 121,000 spins, “Trampoline” passed “High Hopes” and “Bad Guy” in the format, receiving a big boost along the way from Apple (its overall radio spins [...]

  • XXXTentacion

    Album Review: XXXTentacion’s 'Bad Vibes Forever'

    This might be a lousy way of expressing it, but, the last few weeks have been a great time for moody, Nirvana-inspired, emo-punk, SoundCloud rappers… or their fans, anyway, since not all the artists are around anymore to enjoy the spoils. For better or worse, Tekashi 6ix9ine might have handed his prosecutors a get-out-of-jail-early card [...]

  • Biggest Scandals Feuds and Apologies of

    Biggest Scandals, Feuds and Apologies of 2019

    Variety looks back on some of the biggest scandals, feuds and apologies of 2019: College Admissions Scandal Wealthy parents including Felicity Huffman and Lori Loughlin were charged with bribing school officials to get their unqualified kids into prestigious universities. Shane Gillis Executives at “SNL” hired, then fired, Gillis in September, before the new season started, [...]

  • MODEL RELEASED Mixer, assistant at computer

    Women Who Man the Boards: Five Engineers Powering Today's Hitmakers Sessions

    Women behind the boards at recording studios is hardly a new phenomenon. Susan Rogers famously engineered some of Prince’s most beloved albums in the 1980s; Linda Perry first made a name for herself as a producer at the turn of the millennium; there wasn’t a console Imogen Heap didn’t command; and, last year, Emily Lazar [...]

More From Our Brands

Access exclusive content