SiriusXM and iHeartMedia merger talks have stalled, per report

Last month, it was reported that iHeartMedia and SiriusXM were exploring a merger that would create an audio giant.

Now, it sounds like those talks are off, at least for the time being.

According to New York Times reporter Lauren Hirsch, talks between the two audio behemoths “have stalled after the two sides were unable to come to terms.”

“The sources, who were not authorized to speak about the negotiations, said that the talks could always be revived,” wrote Hirsch in Friday’s Dealbook. “But a big question now is what each company’s stand-alone strategy looks like as digital giants like Spotify continue to disrupt the audio industry.”

While the two companies made their mark in the radio industry, they’ve both recently invested heavily in podcasts to keep up with audience demand and keep pace with digital companies like Spotify. IHeartMedia’s podcast lineup, which is headlined by Las Culturistas and Stuff You Should Know, garnered $147 million in revenue in the first quarter. SiriusXM, which has deals with Call Her Daddy and SmartLess, also recently renewed its deal with Howard Stern for three more years.

By merging, the two entities could have shore up their existing radio businesses while scaling up podcast and digital video production in a more streamlined way. However, for now, it sounds like they continue going head-to-head in the race to stay relevant.