IHeart open to takeover talks after rebuffing Liberty offer

Bloomberg

IHeartMedia Inc, the biggest US radio broadcaster, formally turned down a $1.16 billion bid from John Malone’s Liberty Media Corp., but other talks are continuing as the company navigates its way through bankruptcy.
Liberty officially withdrew its bid June 15 after being informed that its offer for a 40 percent stake wasn’t enough to satisfy the company or its senior creditors, iHeart said in court filings.
The broadcaster still has “active conversations with other interested parties” and remains “willing to continue dialogue with Liberty,” iHeart said. “It is possible that such efforts result in the debtors obtaining a higher or better offer.”
The pursuit of iHeart adds to a media-merger frenzy, as cable and telecom operators look to boost flagging growth by adding content providers. AT&T Inc.’s recent clearance to pursue its proposed takeover of Time Warner Inc. is expected to spur more media deals, with bids for Comcast Corp.’s entertainment assets already topping $71 billion.
IHeart collapsed into bankruptcy this year after a 2008 leveraged buyout overloaded the company with debt that topped $20 billion. But it still ranks as the No. 1 US operator of conventional radio stations, with 850 outlets and stars such as Rush Limbaugh, Ryan Seacrest and Sean Hannity. Based in San Antonio, Texas, iHeart also owns an online music streaming service, a live entertainment division and outdoor billboard advertising.
Greg Maffei, Liberty’s CEO, has repeatedly expressed interest in a deal for parts of iHeart and has raised the possibility of a higher bid, citing benefits of combining iHeart’s radio unit with SiriusXM Holdings Inc. and Pandora Media Inc.
One advantage for Liberty is that it accumulated $660 million of iHeart’s debt prior to its bankruptcy filing, paying only $389 million for the stake, according to regulatory filings.