Thursday, October 10, 2013

Liberty Media Targets Majority Share Of SiriusXM

John Malone’s Liberty Media Corporation announced today the following transactions:
  • Repurchase of 5.2% of outstanding Liberty Media common stock from Comcast Corporation
  • Agreement with SiriusXM to repurchase $500 million of SIRI shares from Liberty Media
  • Proposed private offering of $500 million aggregate principal amount of convertible senior notes (with initial purchaser option to purchase an additional $75 million aggregate principal amount) due 2023.

That will leave the media holding company with 52% of the satellite radio service.

Liberty Media and Comcast recently completed a transaction in which a subsidiary of Comcast exchanged approximately 6.3 million shares of LMCA for a newly created subsidiary of Liberty Media which holds Leisure Arts, Inc., approximately $417 million in cash and Liberty Media's rights in and to a revenue sharing agreement relating to the carriage of CNBC. The exchange is intended to be tax-free.

Sirius XM Radio Inc. has agreed to repurchase $500 million of its common stock from Liberty Media as part of Sirius' share repurchase program, which it announced today has been increased by an additional $2 billion.

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