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

AOL merges brands in Canada, unveils new production house

Consolidation mirrors similar moves in U.S. and U.K.

Kill the Goose,
Kill the Golden Egg (Column)

Tony Chapman says social media is ruining the spectacle of the Super Bowl ad

Media industry decries CRTC’s ‘loose-cannon’ simsub call

Revenues, rights deals on the line as Super Bowl comes off the table for advertisers

Canadians flock to YouTube to view ads ahead of Super Bowl

Plus, see which Super Bowl spots are trending globally

Facebook’s premium ad strategy paying off

Q1 growth beats expectations as network increases ad impact, decreases volume

CRTC banning simsub during Super Bowl

Canadians could see U.S. ads during the big game as soon as next year

A by-the-numbers look at #BellLetsTalk

The results from Bell's 2015 mental health campaign blow away previous years

Food Network Canada launching multiplatform cookbook project

Parent Shaw Media still seeking advertising partners for Great Canadian Cookbook

Quebecor Media restructures sales team

Sales executive says the category-specific approach will enable it to better address client needs