SiriusXM Plunges on Liberty Media’s Proposal

Liberty Media Corporation (LSXMA:US) has detailed the terms of a proposed combination involving the Liberty SiriusXM tracking stock group and Sirius XM (SIRI:US) to establish a new, consolidated public company known as “New SiriusXM.”

Sirius XM shares fell 9.2% on the news, while LSXMA stock rose 10.4%.

The proposed transaction would involve Liberty separating the Liberty SiriusXM tracking stock group through a redemptive split-off of a newly created subsidiary of Liberty. This subsidiary would assume ownership of all the assets and liabilities associated with the Liberty SiriusXM tracking stock group.

“The Special Committee, together with its advisors, Solomon Partners Securities, LLC and Debevoise & Plimpton LLP, is evaluating the Proposal.  There can be no assurance that the Proposal, or any other transaction, will be completed or, if so, as to the terms and conditions of any such transaction.,” Sirius XM said in a press release.

This move represents a significant corporate restructuring aimed at consolidating Liberty's interests in SiriusXM and creating a new entity, New SiriusXM.

Senator John Hickenlooper sold $15,000 - $50,000 worth of SIRI shares earlier this year. The stock was down 29.2% year-to-date through Monday’s close.