ENGLEWOOD, Colo. & NEW YORK - Liberty Media Corporation (NASDAQ: LSXMA, LSXMB, LSXMK, FWONA, FWONK, LLYVA, LLYVK) and Sirius XM Holdings Inc. (NASDAQ: NASDAQ:SIRI) have announced the final steps in their planned reorganization, which will culminate in a redemptive split-off and subsequent merger, creating a new public entity operating under the Sirius XM brand.
The transaction is scheduled to take place on September 9, 2024, at 4:05 p.m. EDT, when Liberty Media will redeem each outstanding share of its Series A, B, and C Liberty SiriusXM common stock. Shareholders will receive 0.8375 of a share of common stock in the newly formed New Sirius, with cash compensation for any fractional shares.
Following the split-off, a subsidiary of New Sirius will merge with Sirius XM at 6:00 p.m. EDT on the same day. Sirius XM stockholders, excluding New Sirius and its subsidiaries, will receive 0.1 of a share of New Sirius common stock, again with cash paid for fractional shares. The newly issued shares of New Sirius will begin trading on the Nasdaq Stock Market under the ticker symbol SIRI on September 10, 2024.
Post-merger, New Sirius is expected to have approximately 339.1 million shares of common stock outstanding. Former holders of Liberty SiriusXM common stock are anticipated to own approximately 81% of New Sirius, with the remaining 19% held by minority stockholders of Sirius XM.
This reorganization aims to streamline the corporate structure and create a standalone company that will continue to offer a diverse mix of live, on-demand, and curated audio entertainment and services to a North American audience.
Investors and stockholders have been advised to review the registration statement, proxy materials, and information statement provided by Liberty Media and Sirius XM, which contain important details about the merger. These documents have been made available to all relevant stockholders and can be obtained free of charge from the SEC's website or directly from the companies.
The information presented in this article is based on a press release statement from Liberty Media Corporation and Sirius XM Holdings Inc.
In other recent news, Liberty Media Corporation announced a public offering of over 10 million shares to fund its proposed acquisition of Dorna Sports, the commercial rights holder for the MotoGP motorcycle racing series. The acquisition, expected to be finalized by the end of 2024, will be paid entirely in cash. The company also reported solid financial results for the second quarter of 2024, with SiriusXM maintaining a strong financial position and the Formula One Group, a subsidiary of Liberty Media, seeing a 29% increase in revenue and a 35% increase in OIBDA.
In addition to these financial highlights, Liberty Media's MotoGP acquisition is on track to close by year-end, with all necessary regulatory filings in place. The company also reported a 5% rise in concert attendance at Live Nation, another subsidiary, and a 90% season ticket renewal rate for the Atlanta Braves in 2025.
In response to these recent developments, Citi reaffirmed its Buy rating on shares of Liberty Media Corp-Liberty Formula One, maintaining a consistent price target of $77.00. These updates reflect the company's active pursuit of growth and positive outcomes across its diverse portfolio.
InvestingPro Insights
As Liberty Media Corporation (NASDAQ: FWONA) gears up for its reorganization and merger with Sirius XM Holdings Inc. (NASDAQ: SIRI), investors are closely monitoring the company's financial health and market performance. According to recent data from InvestingPro, Liberty Media Corporation boasts a market capitalization of $17.91 billion, reflecting its substantial presence in the media industry.
InvestingPro Tips indicate that while Liberty Media is trading at a high earnings multiple with a P/E ratio of 64.8, analysts have revised their earnings expectations downwards for the upcoming period. This could suggest that while the company is valued highly by the market, there may be concerns about future earnings potential.
On a more positive note, the company's liquid assets exceed its short-term obligations, which is a reassuring sign of financial stability. This is particularly relevant as the company enters a phase of significant structural change. Additionally, Liberty Media operates with a moderate level of debt, which could provide it with flexibility during and after the merger process.
InvestingPro Data further reveals that Liberty Media has experienced robust revenue growth over the last twelve months as of Q2 2024, with an increase of 43.2%. This growth momentum could be a key factor in the company's post-merger performance and its ability to deliver value to the newly formed New Sirius entity.
Investors interested in a deeper analysis of Liberty Media Corporation's financials and market performance can find additional InvestingPro Tips, including insights on valuation multiples and profitability forecasts, by visiting https://www.investing.com/pro/FWONA. There are 11 more tips available for those seeking comprehensive investment guidance.
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