Liberty Media sets date for Sirius XM restructuring By Investing.com

ENGLEWOOD, Colorado and NEW YORK – Liberty Media Corporation (NASDAQ: LSXMA, LSXMB, LSXMK, FWONA, FWONK, LLYVA, LLYVK) and Sirius XM Holdings Inc. (NASDAQ: NASDAQ:) announced the final steps of their planned restructuring, which will culminate in a spin-off and subsequent merger, creating a new public company under the Sirius XM brand.

The transaction is expected to occur on September 9, 2024 at 4:05 p.m. EDT, when Liberty Media will repurchase each outstanding share of its Series A, B and C common stock from Liberty SiriusXM. Shareholders will receive 0.8375 shares of common stock of the newly formed company, New Sirius, with cash settlement for any fractional shares.

Following the spin-off, a subsidiary of New Sirius will merge with Sirius XM at 6:00 p.m. EDT on the same day. Sirius XM shareholders, excluding New Sirius and its subsidiaries, will receive 0.1 share of New Sirius common stock, with cash also being 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.

Following the merger, New Sirius is expected to have approximately 339.1 million shares of common stock outstanding. Former holders of Liberty SiriusXM common stock are expected to own approximately 81% of New Sirius, with the remaining 19% being held by minority shareholders of Sirius XM.

The goal of this reorganization is to streamline the corporate structure and create a standalone company that will continue to offer North American audiences a diverse mix of live, on-demand and curated audio entertainment and services.

Investors and shareholders are advised to review Liberty Media's and Sirius XM's registration statement, proxy statements and information statement, which contain important details about the merger. These documents have been made available to all relevant shareholders and can be obtained free of charge at the SEC's website or directly from the companies.

The information contained in this article is based on a press release 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 finance the proposed acquisition of Dorna Sports, the holder of the commercial rights to the MotoGP motorcycle racing series. The acquisition, which is expected to close 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 Formula One Group, a subsidiary of Liberty Media, reporting a 29% increase in revenue and a 35% increase in OIBDA.

In addition to these financial highlights, Liberty Media's acquisition of MotoGP is on track to close by year-end, with all necessary regulatory filings in place. The company also reported a 5% increase in concert attendance at Live Nation, another subsidiary, and a 90% renewal rate for season tickets for the Atlanta Braves in 2025.

In response to these recent developments, Citi reiterated its Buy rating on shares of Liberty Media Corp-Liberty Formula One and maintained its price target of $77.00. These updates reflect the company's active pursuit of growth and positive results across its diverse portfolio.

InvestingPro Insights

As Liberty Media Corporation (NASDAQ: FWONA) prepares 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 has a market capitalization of $17.91 billion, reflecting its significant presence in the media industry.

Tips from InvestingPro show that while Liberty Media is trading at a high earnings multiple (P/E) of 64.8, analysts have revised downward their earnings expectations for the coming period. This could indicate that while the company is highly valued by the market, there are concerns about its future earnings potential.

On a positive note, the company's cash exceeds its short-term liabilities, which is a reassuring sign of financial stability. This is particularly relevant as the company enters a period of significant structural change. In addition, Liberty Media is only moderately leveraged, which could give the company flexibility during and after the merger process.

InvestingPro Data also shows that Liberty Media has posted robust revenue growth of 43.2% over the trailing twelve months through the second quarter of 2024. This growth momentum could be a key factor in the company's post-merger performance and its ability to add value to the newly formed New Sirius.

Investors interested in a more in-depth analysis of Liberty Media Corporation's financials and market performance can find more tips from InvestingPro, including insights into valuation multiples and profitability forecasts, at: For those looking for comprehensive investment advice, 11 more tips are available.

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