Does This Potential Acquisition Make Sirius XM Stock a Buy?

Several news outlets are reporting that the satellite streaming operator Sirius XM (NASDAQ: SIRI) is in preliminary talks to acquire iHeartMedia (NASDAQ: IHRT). With over 860 stations, iHeartMedia is the largest U.S. radio station owner, according to Forbes.

For iHeartMedia, exploring a sale makes sense, as it has struggled financially for years and would benefit from the resources and infrastructure the satellite radio company can offer.

For Sirius, iHeartMedia can help boost an increasingly important revenue stream: podcasting.

Image source: Getty Images.

A potential podcast powerhouse

In the next few years, the global podcasting market size is expected to grow by leaps and bounds. According to Grand View Research, the market will be valued at more than $131 billion by 2030.

That spells big opportunities for both Sirius and iHeartMedia, as they are already seeing rising sales in their respective podcast business segments. The SiriusXM Podcast Network was the top network in the U.S. in 2025 in terms of the number of listeners it reached weekly, and 2025 podcasting revenue grew 41% from 2024.

According to Forbes, iHeartMedia is the third-largest podcasting network, with its podcast division's revenue growing more than 25% from 2024 to 2025. In March 2026, the company had a monthly audience of over 31 million listeners, with over 177 monthly downloads.

The value of an acquisition

Theoretically, an acquisition like this for Sirius XM can cut costs, streamline operations, and bring more subscribers and revenue under one roof. Of course, a deal still has to be confirmed, approved, and executed properly for all the potential benefits to unfold.

One concern is that Sirius would be taking over a company that filed for bankruptcy in 2018 and is struggling with net income. Its 2025 net loss of over $471,000 was better than the $1 billion it lost in 2024, but that's still concerning.

For the short term, we'll have to wait to see how serious both companies are about making a deal and to hear from Sirius directly about its vision for the benefits of an acquisition. Until then, the Sirius XM stock price may trade sideways.

If you're thinking about owning shares for the long term, with a company that has a favorable price-to-earnings ratio of 8.7, is expected to boost free cash flow from $1.3 billion in 2026 to $1.5 billion in 2027, and pays a dividend yielding 4%, Sirius is an investment worth considering. As a cherry on top, it also has the support and conviction of Warren Buffett through Berkshire Hathaway, which owns over 37% of the company.

Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.