Sirius XM: iHeartMedia Deal Could Be Financially Compelling

Sirius XM Holdings is considered a buy due to improving free cash flow, a strong balance sheet, and a 4.1% dividend yield. While recent M&A talks with iHeartMedia introduce uncertainty, potential cost synergies could make an acquisition financially attractive if iHeartMedia is bought at a sub-6x EV/EBITDA multiple. Sirius XM’s standalone outlook projects $1.5 billion in free cash flow by 2027 and at least an 8% annual share count reduction through buybacks.

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