Liberty Media Ends Plan To Acquire All SiriusXM Stock
March 14, 2014
Liberty Media announced late Thursday that it has scrapped its plan to attempt an acquisition of all of SiriusXM's shares, and instead is splitting its own media holding company into two separate tracking stocks in the near future. The two tracking stocks are named Liberty Media and Liberty Broadband. However, Liberty remains the majority shareholder in the satellite radio provider.
In an announcement, Liberty Media President/CEO Greg Maffei said, "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 In light of the tracking stock distribution, our offer for SiriusXM is no longer applicable.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 percent of SiriusXM."
At the beginning of the year, Liberty proposed a plan to make SiriusXM a wholly-owned subsidiary, with the SiriusXM Board of Directors forming a special committee to consider the proposal.