Liberty Media Ends Quest To Buy 100% Of SiriusXM, Establishes 2 Tracking Stocks
March 13, 2014 at 3:28 PM (PT)
LIBERTY MEDIA CORPORATION has ended its pursuit of 100% ownership of SIRIUSXM RADIO and instead will retain its 53% ownership and will reclassify its common stock into two new tracking stock groups, the LIBERTY BROADBAND GROUP (its interests in CHARTER COMMUNICATIONS and TIME WARNER CABLE/TRUEPOSITION, INC. and related shares, options, and liabilities, trading under the symbol LBRDA and LBRDB on NASDAQ) , and LIBERTY MEDIA GROUP (its SIRIUSXM interest and everything not covered in the broadband group, trading as LMCA and LMCB). LIBERTY plans to sell SIRIUSXM shares remaining to be sold under the OCTOBER 9th Share Repurchase Agreement.
Holders of LIBERTY’s Series A and Series B common stock will get one share of the corresponding series of LIBERTY MEDIA tracking stock and four shares of the corresponding series of LIBERTY BROADBAND tracking stock for each share of the parent company's stock they hold, and will also get a subscription right to acquire, within 40 dys of closing of the distribution, one additional series A or B share of LIBERTY BROADBAND tracking stock at a 20% discount ot the 20-trading-day average price for every five shares of series A or B LIBERTY BROADBAND tracking stock they receive in the distribution.
LIBERTY President/CEO GREG MAFFEI said, “We are creating two new tracking stocks, LIBERTY MEDIA and LIBERTY BROADBAND. This is another step in Liberty’s process of offering investors greater choice, transparency and focus. We expect to complete the creation of the new tracking stocks by the third quarter. In light of the tracking stock distribution, our offer for SIRIUSXM is no longer applicable. Depending on market conditions, we look forward to further discussions with the SIRIUSXM Special Committee. We remain enthusiastic owners of 53% of SIRIUSXM.”
Chairman JOHN MALONE added, “We remain very excited about our investments in the cable sector and CHARTER COMMUNICATIONS. We think TOM RUTLEDGE and his team are successfully executing their strategy to upgrade the network to all digital and accelerate CHARTER’s growth. We believe the creation of the LIBERTY BROADBAND tracking stock and the concurrent rights offering will provide us greater flexibility to, among other things, support CHARTER in its expansion efforts.”