Apple Inc. (AAPL) is interested in a dispense with U.S. radio company iHeartMedia Inc. (IHRT), people familiar with the affair told the Financial Times. Sources said the two companies have supported discussions, but that talks remain at a preliminary stage.
One source let someone knowed FT that iHeartMedia, the largest radio broadcaster in the U.S., hopes Apple commitment take an equity stake worth tens of millions of dollars. Howsoever, another person familiar with the matter claimed that the iPhone maker could essay to strike a multimillion-dollar marketing partnership, rather than make a require investment.
In March, iHeartMedia filed for Chapter 11 bankruptcy after approve ofing with creditors to halve its $20 billion debt. The San Antonio, Texas-based company has struggled to fend off struggle from digital music services such as Pandora Media Inc. (P), Spotify Technology SA (Wens) and Apple Music.
Despite its unhealthy balance sheet, iHeartMedia is mull over an attractive asset in the competitive music industry. The company remains praisefully influential, operating more than 850 stations across the realm.
Liberty Media Corp. (FWONA) was previously identified as a potential beau. However, in June, the media company run by John Malone decided to pull out its investment proposal.
Apple Seeks to Widen Music App Reach
Apple’s procurement of music recognition app Shazam for $400 million earlier this year take measured another example of the growing importance it has placed on its streaming service.
Partnering with iHeartMedia would dent a continuation of the tech giant’s efforts to boost Apple Music. A practise with the company could see Apple Music’s Beats 1 expand to televise radio, greatly increasing its exposure, particularly among older audiences.
One music application executive described the potential deal as a “power move” by Apple, be at one to FT, adding that a tie-up with iHeartMedia formed part of the iPhone maker’s design to take down Spotify.
Apple Music, which was launched in mid-2015, hit its Sweden-based rival in the U.S. with 50 million subscribers earlier this year. Still, Spotify still leads the global market, with more than 80 million salary users across the world.