Liberty Media drops bid for remaining Sirius stock

Liberty Media is dropping its bid to buy the rest of the satellite radio provider Sirius. The move disclosed late Thursday comes as Liberty Media Corp., which is controlled by billionaire John Malone, takes steps to create two new tracking stock groups for its business. One will be called Liberty Media Group and the other […]

Liberty Media is dropping its bid to buy the rest of the satellite radio provider Sirius.

The move disclosed late Thursday comes as Liberty Media Corp., which is controlled by billionaire John Malone, takes steps to create two new tracking stock groups for its business. One will be called Liberty Media Group and the other will be Liberty Broadband Group.

Liberty Media said that because of the tracking stock distribution, it is withdrawing its offer for the rest of New York-based Sirius XM Holdings Inc. Liberty Media owns 53 per cent of Sirius stock.

In January, Liberty announced a complex proposal that would have allowed it to obtain full ownership of Sirius. The deal would’ve valued Sirius at nearly $23 billion.

Liberty Media President and CEO Greg Maffei said in a statement that the company may hold further discussions with Sirius depending on market conditions.

Sirius XM has built the world’s largest pay-radio service with 25.6 million subscribers.

The creation of the new tracking stocks still needs approval from Liberty Media shareholders. But Liberty expects it to be in place by the third quarter.

Liberty Media said that the Liberty Broadband Group is expected to include its interest in the cable TV provider Charter Communications Inc. as well as its interest in another cable company Time Warner Cable Inc. and its subsidiary TruePosition Inc. It will also include a note obligation from Liberty Broadband Group to Liberty Media Group, a call option liability associated with Liberty’s Time Warner Cable shares and liabilities at TruePosition.

Englewood, Colo.-based company Liberty Media said the Liberty Media Group will include the rest of its businesses, assets and liabilities. That would include Liberty’s subsidiary Sirius XM Holdings Inc.

Media Articles

Keith Pelley leaving Rogers

Media exec moving on to lead The European Tour as commissioner and CEO

On The Move: New hires at RBC, Match and North Strategic

A weekly recap of who's headed where in Canadian marketing and communications

Canada’s Hottest Ads – The GoPro and Samsung show

Diego Bertagni and Joshua Stein are scratching their heads at the latest Top 10

Deal between Disney and Corus puts kids shows on new channel

Deal adds new layer of confusion to already muddled rights ownership in Canada

Global agency stocks waver as kickback controversy grows

Influential Wall Street analyst issues warning about growing awareness of media rebates

Spotify introduces playlist targeting

New service will enable advertisers to target listeners by mood, activity

CBC severs ties with top execs

Public broadcaster parts ways with Chris Boyce and Todd Spencer

Shaw appoints VP, marketing and PR amid reorganization

Christine Shipton and Greg Treffry also promoted as a result of recent changes

Corus secures Canadian rights to Disney Channel content

Deal includes streaming content and ad-supported video on demand