Apple in preliminary talks to take stake in U.S. radio company iHeartMedia

“Apple is turning to traditional broadcasting to boost its streaming service, exploring a tie-up with iHeartMedia, the largest US radio group that is attempting to claw itself out of bankruptcy,” Anna Nicolaou and Tim Bradshaw report for Financial Times. “The company is saddled with $20bn in debt and filed for bankruptcy protection in March, as radio audiences have been lured away by digital music services such as Pandora, Spotify and Apple Music.”
“iHeartMedia is hoping Apple will take an equity stake worth tens of millions of dollars, according to one person briefed on the talks. Another person suggested that the tie-up could result in a multimillion-dollar marketing partnership rather than a direct investment,” Nicolaou and Bradshaw report. “Discussions between iHeartMedia and Apple remain at a preliminary stage and no deal has been agreed, the people with knowledge said.”
“A partnership could see Apple Music’s Beats 1 radio station, which is only available through its apps, make its debut on broadcast radio. Extra distribution would give Beats 1 and Apple Music greater awareness among older audiences who are later adopters of streaming services. A deal would also put the Apple station into more cars or kitchens,” Nicolaou and Bradshaw report. “Despite iHeartMedia’s financial difficulties, it remains the largest radio broadcaster in the US, operating more than 850 stations across the country.”
Read more in the full article here.
MacDailyNews Take: Such a deal would significantly increase Apple’s already prodigious clout in the U.S. music industry.
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