Source: courtesy of Sirius XM Radio
Here is the bit about the Sirius offer:
In light of the tracking stock distribution, our offer for SiriusXM is no longer applicable. Depending on market conditions, we look forward to further discussions with the SiriusXM Special Committee. We remain enthusiastic owners of 53% of SiriusXM.
Sirius will also complete its repurchase of $500 million of its own stock from Liberty, and the Liberty Media Group would assume ownership of the company’s stake in Sirius, among other assets.
The two-tracking stock setup that Liberty has selected will issue one new share of Liberty Media tracking stock for each share of Series A and Series B and four shares of the new Liberty Broadband tracking stock for each share of Liberty Media they hold. Stockholders also will receive a subscription right to acquire one additional series A or series B share of Liberty Broadband tracking stock for every five shares of series A or five shares of series B Liberty Broadband tracking stock they receive in the distribution.
So ends the $3.68 per share offer Liberty had on the table for the 48% of Sirius it does not own. And then things get worse for Sirius shareholders.
Now that Liberty has been cut out of an acquisition of Time Warner Cable Inc. (NYSE: TWC), Liberty does not need the cash flow generated by Sirius. Liberty would be happy to see shares of Sirius decline so that the larger firm could pick up the remaining shares of the satellite radio company for even less than its original paltry offer. And if Sirius shares do not sink on their own, there is always the subscription rights, which give an investor access to Sirius without actually having to buy the shares.
Shares of Sirius were trading up about 3.8% Friday morning, at $3.49 in a 52-week range of $2.95 to $4.18.
Class A shares of Liberty Media were trading up nearly 9%, at $137.31 in a 52-week range of $107.07 to $159.33.
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
