Liberty Media Corp. dropped its proposal to acquire the rest of
satellite-radio provider Sirius XM Holdings Inc. that the
media-investment company doesn't already own.
The company announced the withdrawn offer along with a plan to
create two new tracking stocks.
Shares of Sirius fell 2.7% to $3.28 in after-hours trading,
while Liberty's Class A stock rose 0.7% to $127.03.
Liberty, which currently owns about 53% of Sirius, said Thursday
in light of the tracking stock distribution, "our offer for
SiriusXM is no longer applicable." Sirius in early January offered
to convert Sirius's common stock into new Liberty Series C
nonvoting shares at a proposed exchange ratio that would value
Sirius common stock at about $3.68 a share.
Taking full ownership, Liberty explained at the time, was
intended to "eliminate ambiguity" in the long-term relationship
between the companies. The move also would have given Liberty
access to a new source of capital as it pursued a big cable
merger.
Under a plan authorized by Liberty's board, holders of Liberty
Series A and Series B stock would receive one share of the
corresponding series of Liberty Media and Liberty Broadband stock
for each share held by investors.
Liberty Broadband will include the company's interest in cable
operators Charter Communications Inc. and Time Warner Cable Inc.,
as well as TruePosition, among other obligations and
liabilities.
The assets attributed to Liberty Media will include Sirius.
Write to John Kell at john.kell@wsj.com
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