ENGLEWOOD, Colo. (CelebrityAccess)– Billionaire John Malone’s Liberty Media, owners of a majority stake in SiriusXM, announced a plan to spin off their holdings in the satellite radio broadcaster as a standalone company.
Under the terms of the proposed transaction, Liberty would spin off its holdings of SiriusXM into a new company that would then merge as a publicly traded entity with SiriusXM.
“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 Greg Maffei, Liberty President & CEO. “SiriusXM minority shareholders will also benefit from enhanced trading dynamics, including increased liquidity and likelihood of future index inclusion. 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.”
Following the proposed merger, minority investors of SiriusXM would own about 16% of the company while Liberty would retain its current ownership stake of about 83%.
Additionally, minority investors would receive a pro rata cash payment calculated based on the amount of the outstanding net debt of LSXM effectively assumed by New SiriusXM in the proposed transaction.
Along with SiriusXM, Liberty Media maintains significant equity stakes in Formula 1 Racing and Live Nation.
