Sirius XM Holdings Inc. has officially commenced operations as an independent public company following the closure of its transaction with Liberty Media. The merger, first disclosed in December, aims to streamline the satellite broadcaster’s capital structure.
The Liberty Media transaction was completed after the market’s close on September 9, resulting in Sirius XM Holdings Inc. now trading independently on Nasdaq under the ticker SIRI.
As a “new” company, SiriusXM has reiterated its financial projections for 2024, expecting total revenue of around $8.75 billion, adjusted EBITDA of approximately $2.7 billion, and free cash flow of about $1.0 billion. These forecasts take into account an estimated $200 million in transaction-related costs, including closing expenses and additional interest expenses linked to the Liberty Media transaction.
The company announced the continuation of its dividend program, post-adjustment for the Liberty Media transaction exchange ratio, at roughly 27 cents per quarter. Additionally, a $1.166 billion common stock repurchase program has been authorized.
CEO Jennifer Witz emphasized, “Today SiriusXM embarks on a new phase in our journey as an independent public company, building on our leading position in audio entertainment. We’ve created a strong and profitable business, anchored by a subscription service that fosters deep and loyal connections with our listeners and a growing digital audio advertising platform which extends our reach to fans around the world, and we are excited about the future as we look to expand and strengthen both platforms.”
CFO Thomas Barry stated, “As we enter our next phase as an independent company, we expect SiriusXM to continue delivering solid, profitable results. After completing the transaction…our capital allocation priorities are consistent: investing in our business, focusing in the near- to mid-term on reducing debt to return to our long-term target leverage, and continuing our capital return posture.”
