Good Data From SiriusXM Is Bad News for Liberty Media
SiriusXM (NASDAQ:SIRI) announced on Wednesday that it surpassed its expectations for subscriber growth in 2013. The satellite radio provider added 1.66 million subscribers during the year, slightly over its expectations of 1.6 million. That brought Sirius’ subscriber total to 25.56 million at the year’s end. In response to those figures, Sirius raised its expectations for 2014. The company said that it expects to add 1.25 million net subscribers, make $4 billion in revenue, and post earnings of $1.38 billion during the year.
“SiriusXM had an outstanding 2013, and we expect to meet or exceed all other guidance we have provided for the year. Automotive distribution is hitting on all cylinders and an increasing number of households, at all income levels, are subscribing to SiriusXM,” CEO Jim Meyer said in the announcement. Meyer also highlighted Sirius’ increased work with vehicle connectivity as a reason for optimism in 2014.
Sirius’ improved guidance is bad news for majority investor Liberty Media (NASDAQ:LMCA), which made a $10.6 billion bid to purchase Sirius last week. That deal values the company at $3.68 a share. Since then, Sirius’ stock has risen, causing some to believe that Liberty may be getting ready to sweeten their deal, or Sirius may be entertaining offers from another buyer. Sirius shares were trading at $3.80 at the time of writing on Wednesday afternoon.