Liberty Media, the owner of SiriusXM Radio, on Friday said it has pulled a proposed deal to inject $1.16 billion into iHeartMedia.
The move follows iHeartMedia, which owns internet station iHeartRadio, rebuffing the proposed cash injection from Liberty Media in return for a 40 percent stake.
“Liberty Media withdrew its proposal for iHeart after reviewing results which were below expectations and negatively impacted our initial estimates of value,” Liberty Media, which is controlled by media mogul John Malone, said in a statement.
“We remain open to future discussions as iHeart proceeds with its reorganization,” the company added, as it holds open the possibility of a higher cash offer.
Broadcast and internet radio giant iHeartMedia earlier sought bankruptcy protection as it deals with a debt pile of $20 billion, the legacy of a leveraged buyout in 2008.
Liberty Media offered to stave off a bankruptcy filing by injecting $1.16 billion into iHeart, but that proposed deal was rejected by iHeart creditors earlier in the month.
Liberty already owns a significant amount of iHeart’s debt.