With SiriusXM just days away from finalizing its merger with Liberty Media Corporation, shareholders have approved a plan where Liberty Media will exchange existing SiriusXM shares for new shares in “SplitCo,” which will get a new name next month.
This arrangement is set to finalize on September 9, with SiriusXM becoming a wholly-owned subsidiary of “SplitCo,” which will then be renamed Sirius XM Holdings Inc. The new entity, referred to as New SiriusXM, is expected to start trading on the Nasdaq under the ticker symbol “SIRI” on September 10. The merger combines multiple ticker symbols – including LSXMA, LSXMB, and LSXMK – into SIRI.
An SEC filing on June 17 disclosed a reverse stock split along with the merger, adjusting the exchange ratio from ten SiriusXM shares to one New Sirius share, a change from the initial 1:1 ratio due to net liabilities. This adjustment aims to economically balance the transaction, enhance the new share price, and reduce the total number of shares issued.
The restructuring also converts SiriusXM Radio Inc. into a Delaware limited liability company to align share prices effectively and boost market appeal post-transaction.
Throughout the process, SiriusXM reported another quarter of subscriber loss, recording a 3% decrease in Q2 2024 revenue to $2.18 billion. Net income slightly increased from $310 million in Q2 2023 to $316 million. A reduction of 100,000 self-pay subscribers, primarily due to higher vehicle-related churn and fewer streaming additions, contributed to a 5% drop in revenue for the SiriusXM segment to $1.6 billion. The total count of trial subscribers also decreased slightly to 7.4 million.
Conversely, the Pandora and Off-Platform segment saw a 2% revenue increase to $538 million, bolstered by steady advertising revenue and a rise in subscriber revenue, enhancing the gross margin to 33%.
The company is expanding its reach with initiatives that include a new no-cost, ad-supported service in select vehicles and Podcasts+, a premium subscription service within Apple Podcasts offering ad-free content, exclusive episodes, and more.
