A special committee of independent directors at SiriusXM Holdings Inc. is currently reviewing a non-binding proposal to merge the company’s shares with a group of tracking stocks representing Liberty Media’s stake. The proposed transaction aims to consolidate the shares of both Liberty’s SiriusXM tracking stock group and SiriusXM common stock into a single class of common stock for the newly combined entity.
SiriusXM is traded on the Nasdaq GlobalSelect market under the ticker SIRI. Liberty Media Corporation has multiple ticker symbols traded on the Nasdaq, including LSXMA, LSXMB, and LSXMK.
SiriusXM’s stock recently saw a marginal increase after the announcement, currently trading at $4.06 per share. Despite fluctuations in the past year, the stock’s 1-year target estimate stands at $5.02.
The special committee at SiriusXM is in the process of evaluating the proposal in conjunction with advisors Solomon Partners Securities and Debevoise & Plimpton LLP. No formal decision has been made, and shareholders have been advised to hold off on any action at this moment.
“Liberty’s proposal rationalizes the dual corporate structure between LSXM and SiriusXM and provides value to all shareholders with a more flexible and attractive currency in New SiriusXM,” said Liberty President/CEO Greg Maffei. “We are excited about the prospects for New SiriusXM and look forward to remaining meaningfully invested in the business. This simplified structure will also allow management to better focus on its strategic priorities, drive the company’s continued growth and simplify the investor relations story.
