Liberty Media goes after Sirius XM in the U.S.

Liberty Media is trying to devour all of Sirius XM in a deal that would value the satellite radio service at nearly $23 billion. The complex proposal announced Friday would enable Liberty Media Corp. to seize full ownership of Sirius XM Holdings Inc. after it acquired a controlling interest in the company last year. Liberty […]

Liberty Media is trying to devour all of Sirius XM in a deal that would value the satellite radio service at nearly $23 billion.

The complex proposal announced Friday would enable Liberty Media Corp. to seize full ownership of Sirius XM Holdings Inc. after it acquired a controlling interest in the company last year.

Liberty Media, an Englewood, Colo., company controlled by billionaire John Malone, owns about 53% of Sirius XM’s stock, according to a letter filed Friday with the Securities and Exchange Commission.

Under the proposal, each Sirius share would be exchanged for 0.076 shares of Liberty Media’s Series C Common stock if the bid is accepted.

Sirius XM stockholders would end up with a 39% stake in Liberty Media, whose portfolio already includes ownership of the Atlanta Braves baseball team, and stakes in cable TV and Internet service provider Charter Communications Inc., concert promoter Live Nation Entertainment Inc. and book retailer Barnes & Noble Inc.

The stock swap translates into $3.68 for each Sirius XM share, based on Friday’s closing price of Liberty Media’s stock. The bid is just 3% above Sirius XM’s Friday closing price of $3.57 per share. The stock jumped 5% to $3.75 in extended trading after the proposal was unveiled.

The offer values Sirius XM at just under $23 billion, based on company’s 6.1 billion outstanding shares as of Oct. 22. Liberty Media CEO Greg Maffei told analysts in a conference call that the deal ultimately will peg Sirius XM’s value at $27 billion because of additional shares expected to be issued under the proposal.

Maffei said Liberty Media will abandon the deal if it doesn’t win the backing of Sirius XM’s board. Sirius XM said it is forming a special committee of independent directors to consider the offer.

New York-based Sirius XM has built the world’s largest pay-radio service with 25.6 million subscribers. Despite its popularity, Sirius XM has faced numerous challenges through the years, including stiffer competition from digital radio alternatives offered by Pandora Media Inc. and Apple Inc.

Liberty Media saved Sirius XM from near bankruptcy in 2009 with a $530 million loan.

Media Articles

Google Contributor lets users pay to block ads

Tech giant creates a way for users to bid on their own impressions

The show about nothing heads to Bell Media’s ‘Project Latte’

Seinfeld joins The Big Bang Theory, The Goldbergs, The Millers and Spun Out

CFL takes to the skies with Canadian North

League unveils new flying “billboard” in advance of 102nd Grey Cup

Transcontinental bets on local with sale of consumer titles

Company focuses on maintaining its competitive advantage

Content marketing veteran launches new B2B play

New venture combines business-to-business focused journalism with B2B-focused content marketing

Dairy Farmers of Canada and W Network’s cheesy campaign

Holiday effort from m2 targets ‘zestfuls’

Coors looks to score with Yahoo fantasy football initiative

Multi-faceted marketing program includes display, native ads, takeovers and search

Why advertisers continue to use print flyers

New study finds print flyers remain widely read, inspire consumer action