Liberty Media makes a bid for full ownership of Sirius XM

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Liberty Media wants to buy all of Sirius XM. Based on the terms of the deal, Sirius XM would be worth nearly $23 billion. Liberty Media bought a controlling interest in the company last year. Currently Liberty Media owns around 53% of Sirius XM stock, according to a letter filed with the SEC on Friday.

Each Sirius share would be exchanged for 0.076 shares of Liberty Media Series C Common stock if the bid is accepted based on the proposal. Sirius XM stockholders would end up with a 39% stake in Liberty Media. Liberty Media properties include ownership in the Atlanta Braves baseball team, stake in cable TV and ISP Charter Communications, concert promoter Live Nation, and book retailer Barnes & Noble.

Liberty Media will abandon the deal if it doesn’t win the approval of the Sirius XM board of directors. Sirius XM is forming a special committee of independent directors to review the offer. Sirius XM currently has around 25.6 million subscribers. Sirius XM almost went bankrupt in 2009, but Liberty Media provided the satellite company with a $530 million loan.

[Source: ABC]

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