Liberty Media Liberty SiriusXM tracking stock group is set to merge with satellite radio and audio entertainment giant SiriusXM, resulting in the formation of a new public company named “New SiriusXM.” The merged entity will continue operations under the familiar SiriusXM brand, as announced by the companies on Tuesday.
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As of July 31, Liberty, under the leadership of President and CEO Greg Maffei and Chairman John Malone, held an 83 percent stake in SiriusXM. This move is part of Liberty’s efforts to simplify the ownership structure of SiriusXM, following a proposal submitted in September.
Liberty Media
New SiriusXM shares are anticipated to be traded on the Nasdaq Global Select Market with the ticker symbol “SIRI.” The deal aims to eliminate the tracking stock structure, enhance liquidity, and enable former LSXM stockholders to directly participate in the ongoing performance of SiriusXM.
Greg Maffei expressed optimism about the transaction, stating, “This combination will create value for all stockholders by eliminating the tracking stock structure, enhancing liquidity, and allowing former LSXM stockholders to participate directly in the ongoing performance of SiriusXM.”
SiriusXM CEO Jennifer Witz emphasized that the deal would propel SiriusXM into its next phase of value creation. She highlighted SiriusXM’s success in the audio entertainment industry, attributing it to the company’s focus on high-quality, premium, human-curated radio.
The transaction, unanimously approved by Liberty’s board, SiriusXM board’s special committee, and SiriusXM’s board of directors, is expected to be finalized in the early third quarter of 2024. The completion is contingent on various conditions, including regulatory approvals and majority shareholder approval.
Greg Maffei is poised to become the chairman of the board of New SiriusXM. Trusts affiliated with John Malone have committed to voting their LSXM shares in favor of the transaction.
The companies outlined several benefits of the merger, including New SiriusXM becoming an independent public company with no majority stockholder, a simplified ownership structure, and increased strategic flexibility. The deal is anticipated to offer broader investor access and trading liquidity for New SiriusXM stockholders. Overall, it provides all stockholders with the opportunity to directly participate in the long-term potential of the leading audio-entertainment company in North America.
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