Liberty Media has proposed combining with SiriusXM. The group, which also owns controlling interest in the Atlanta Braves and Formula One Racing, has proposed forming a “new, consolidated public company” with the satellite radio giant.
According to the Liberty Media website, the company already owns 83% of SiriusXM. Combining the to companies would give Liberty full control of both SiriusXM and Pandora.
If a deal were to close, minority shareholders would own 16% of SiriusXM. Liberty proposes the other 84% would belong to holders of LSXM stock.
“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,” Liberty president and CEO Greg Maffei said. “SiriusXM minority shareholders will also benefit from enhanced trading dynamics, including increased liquidity and likelihood of future index inclusion.”
SiriusXM issued a statement acknowledging the proposal. The company had no recommendation to shareholders at this time.
“There can be no assurance that the proposal, or any other transaction, will be completed or, if so, as to the terms and conditions of any such transaction,” the statement says.
