Liberty Media Seeks Full Ownership of Sirius XM Radio
John Malone’s Liberty Media (NASDAQ:LMCA) took majority ownership of Sirius XM Radio (NASDAQ:SIRI) in January 2013, but it looks like Liberty Media now has its eye on taking full ownership of the satellite radio company in early 2014.
On Friday, Liberty Media announced a proposal to turn Sirius XM Radio into a wholly-owned subsidiary, creating a third class of Liberty Media shares in the process, Forbes reports. In the the proposed deal, Sirius XM Radio shareholders would have their common stock converted into 0.076 of a new Liberty Media share following a 2-to-1 distribution of Liberty Media Series C common stocks to all Series A and B stakeholders. According to Forbes, the proposed exchange ratio would value Sirius shares at about $3.68 per share.
“We believe the combined company will have better access to capital and all of Liberty’s shareholders — both its current shareholders and the Sirius shareholders who become Liberty shareholders as a result of the proposed transaction — will enjoy enhanced liquidity as shareholders of a $27 billion market capitalization company,” Liberty Media CEO Greg Maffei said in a statement. “The proposed transaction is an important step in the growth of both companies.”