Liberty Media CEO Says SiriusXM Shareholders 'Wish They Had Taken' Buyout Offer
October 10, 2014 at 3:53 AM (PT)
During remarks at at the FBR DIGITAL MEDIA THOUGHT LEADERS CONFERENCE in NEW YORK YESTERDAY (10/9), LIBERTY MEDIA CEO GREG MAFFEI got tongues wagging when he commented about the attempted LIBERTY buyout offer of the satcaster earlier this year, saying "SIRIUS holders wish they took the deal."
THE HOLLYWOOD REPORTER notes, "shares of SIRIUSXM were trading at $3.28 on THURSDAY, whereas LIBERTY, which already owns more than half the company, offered to pay $3.86 a share for the stock it didn't own. SIRIUSXM shareholders balked, and LIBERTY withdrew the offer seven months ago. On THURSDAY, though, MAFFEI reiterated that such a deal 'ultimately makes sense,' for tax purposes and reasons of synergy, given LIBERTY has stakes in LIVE NATION ENTERTAINMENT and many other media, digital and entertainment businesses."
Back in JANUARY (NET NEWS 1/3), LIBERTY MEDIA proposed a plan to make SIRIUS XM RADIO a wholly-owned subsidiary of LIBERTY. The plan would issue LIBERTY shares, in a new Series C common stock, to all SIRIUS XM shareholders in a ratio of 0.0760 shares of the new LIBERTY stock for each SIRIUS XM share that, based on that day's closing prices, values SIRIUS XM at $3.68 per share; LIBERTY Series A and B shareholders would get shares of the new Series C stock in a 2:1 ratio. After the deal is complete, SIRIUS XM shareholders would own about 39% of LIBERTY.