Seeking Alpha

Liberty Media proposes to assume full ownership of Sirius XM

  • Liberty Media (LMCA), which already owns a majority stake in Sirius XM (SIRI), is proposing to make Sirius a 100%-owned subsidiary through an all-stock deal. (PR)
  • Liberty proposes to have each Sirius converted into a 0.076 new Liberty Series C shares, and then distribute, on a 2:1 basis, Series C shares to all holders of Liberty's Series A and B shares.
  • The exchange ratio values Sirius at $3.68/share based on Liberty's Friday close; that's an $0.11, or 3%, premium to Sirius' closing price of $3.57.
  • Sirius' public shareholders would own 39% of the new company, which (based on current prices) stands to have a market cap of $27B.
  • Sirius shares are halted. CC at 5PM ET.
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Comments (93)
  • djfunkydj
    , contributor
    Comments (93) | Send Message
     
    Glad i sold at 4 bucks.
    3 Jan 2014, 04:58 PM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8916) | Send Message
     
    Interesting. Offer is a little low for my tastes... whatever happened to that Malone quote where he would demand a premium? Selling back to SIRI at a 1.5% discount on the sellback and then offering a premium for the shares isn't demanding a premium...
    3 Jan 2014, 05:01 PM Reply Like
  • DWD Investing
    , contributor
    Comments (9614) | Send Message
     
    Stephen,

     

    No it sure isn't. It's almost like they want it more than the buyer. However, I'm confused about what this means:

     

    "Liberty proposes to have each Sirius converted into a 0.076 new Liberty Series C shares, and then distribute, on a 2:1 basis, Series C shares to all holders of Liberty's Series A and B shares."

     

    Can you explain exactly how this is going to affect shareholders and the shares they hold?
    3 Jan 2014, 05:58 PM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8916) | Send Message
     
    They receive shares of LMCA C stock, which is non voting. Not really a problem for current SIRI shareholders since LMCA owns majority of SIRI so current holder's voting capabilities are limited or arguably nonexistant. It's an equity offering in which LMCA gives a bit of a premium to current SIRI holders for the conversion. The new LMCA will be about 80% SIRI.
    3 Jan 2014, 06:38 PM Reply Like
  • Thurston Howell
    , contributor
    Comments (15) | Send Message
     
    Steve,

     

    What are the chances that the offer is raised?
    4 Jan 2014, 01:54 AM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8916) | Send Message
     
    I would expect a more favorable ratio to be negotiated. How much is hard to estimate, but I would expect and be happy with a valuation of $3.85 or greater.
    4 Jan 2014, 02:16 AM Reply Like
  • mseiler270
    , contributor
    Comment (1) | Send Message
     
    I too would like to know how the math is computed on these numbers
    4 Jan 2014, 08:34 AM Reply Like
  • Chancer
    , contributor
    Comments (3162) | Send Message
     
    What is more significant to me (as I understand) is that SIRI shareholders will have a 39% interest in the non voting shares of a Liberty subsidiary. That subsidiary may have limited marketability, liquidity, trading, and investor interest. Who will want to buy stock in this Liberty subsidiary? Those only interested in how SIRI performs alone? Why not just buy LMCA and get SIRI performance included with Liberty?

     

    If SIRI shareholders received Liberty shares it might be worth something. I am now more likely to sell SIRI if we can get a bump up to $4.
    4 Jan 2014, 12:57 PM Reply Like
  • piano man
    , contributor
    Comments (68) | Send Message
     
    I don't know need dust to settle here
    3 Jan 2014, 05:04 PM Reply Like
  • popeye305
    , contributor
    Comments (512) | Send Message
     
    Folks, don't worry , this is just an opening bid. It better be, I have a ton of this stock. Hope we see $4. No bidding war likely since Liberty already owns a majority position. If Liberty gets it, the Liberty stock which I get will be worth a lot more later on, so while I want a higher price now, can live with the Liberty C stock for later on goodies.
    3 Jan 2014, 05:07 PM Reply Like
  • bboggs
    , contributor
    Comments (43) | Send Message
     
    I think $3.68 will be the only bid since Liberty is the majority stock holder. Why would they bid against themselves?
    3 Jan 2014, 06:27 PM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8916) | Send Message
     
    It's not a matter of a bidding war. It's a matter of an agreed upon price deemed appropriate to current holders for the transaction.
    3 Jan 2014, 06:40 PM Reply Like
  • bboggs
    , contributor
    Comments (43) | Send Message
     
    Stephen - I concur. I don't see Liberty raising their offer.
    3 Jan 2014, 06:44 PM Reply Like
  • H50
    , contributor
    Comments (43) | Send Message
     
    4.50 please :)
    3 Jan 2014, 05:24 PM Reply Like
  • vinci666
    , contributor
    Comments (52) | Send Message
     
    Im not sure what to think. Ive held this stock for many years and I'm not so sure 3.68 sounds so hot. On the other hand having a liberty stock might be fruitful being Mr Malone seems to like making money for himself and his share holders
    3 Jan 2014, 05:34 PM Reply Like
  • DUP
    , contributor
    Comments (280) | Send Message
     
    I got SIRI when Stern first went on the air, it peaked around $7/share, I am STILL way below where it should be, maybe I can at least get my money back?
    3 Jan 2014, 06:03 PM Reply Like
  • rvn0
    , contributor
    Comments (137) | Send Message
     
    I'd hold. SIRI is finally getting positive media attention. Stocks move on volume and SIRI has a very deep moat. I'm thinking of buying in while the price is still reasonable.
    3 Jan 2014, 06:20 PM Reply Like
  • acrturus
    , contributor
    Comments (45) | Send Message
     
    My first SIRI shares were 6.50 too. But luckily I backed up the truck one fateful day when they were .19. It's all been gravy since then.
    3 Jan 2014, 07:11 PM Reply Like
  • bboggs
    , contributor
    Comments (43) | Send Message
     
    Essentially it is a 6.57 reverse stock split with a 11 cent premium. The name is changed to protect the guilty and confuse the brilliant.
    3 Jan 2014, 06:10 PM Reply Like
  • bboggs
    , contributor
    Comments (43) | Send Message
     
    If I read it correctly....

     

    ((# of SIRI shares)(0.076))(2)=# of LMCA-C shares

     

    So in my case it is:

     

    ((20500)(0.076))(2)=3116 LMCA-C shares

     

    But I could be wrong....
    3 Jan 2014, 06:38 PM Reply Like
  • bboggs
    , contributor
    Comments (43) | Send Message
     
    After re-reading the offer I think it will be 1558 shares, not 3116 shares, of LMCA-C.
    3 Jan 2014, 06:47 PM Reply Like
  • Scott Sacknoff
    , contributor
    Comments (73) | Send Message
     
    It's confusing but the factor of two is simply to get the market caps to line up with their 39% proposal. LMCA A&B holders get two shares of C for each existing one they hold. Sirius gets 0.076 per share
    3 Jan 2014, 06:48 PM Reply Like
  • tonyc920
    , contributor
    Comments (103) | Send Message
     
    LMCA closed at $145.33. I'm confused about the 2:1 after the conversion rate.
    I have 12500 shares of SIRI. Stephen, help me out here. We're brain frozen here in GB. Literally !
    And no I'm not going to the game on Sunday, too damn cold ! HaHa.
    3 Jan 2014, 06:17 PM Reply Like
  • bboggs
    , contributor
    Comments (43) | Send Message
     
    I think the new stock will be LMCA-C (C Series/Class)
    3 Jan 2014, 06:32 PM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8916) | Send Message
     
    2:1 is what current holders of LMCA will receive as LMCC (or whatever the ticker is) on conversion. 12500 shares of SIRI get 960 shares of LMCC which should be valued at (very rough calculations here.... )

     

    Current LMCA pricing divided by 3.

     

    Again this is VERY rough calculation and there are a lot more things to consider to figure out the exact future value of the offering. Since LMCA / SIRI will likely bounce around a bit until things equalize it may appear like a good / bad deal depending on where the two prices go in the short term, but expect them to equalize right before the trade.

     

    Unless you understand ALL the moving parts it is best to remain with either LMCA or SIRI and allow the transaction to happen vs. trying to grab the best end of the deal. If negotiations are appropriate it will be near equal with the likelyhood of a small premium going to SIRI holders. Because of this SIRI appears to me to be more attractive before the transaction.
    3 Jan 2014, 06:53 PM Reply Like
  • acrturus
    , contributor
    Comments (45) | Send Message
     
    I'm going. Bought new boot inserts today.
    3 Jan 2014, 07:12 PM Reply Like
  • tonyc920
    , contributor
    Comments (103) | Send Message
     
    I certainly have no aspirations to sell at this point, but this news isn't what I had expected. Maybe another year or 2 down the road. I knew something was going to give at some point. I'll just lay back and wait it out. Hope for the best. Thx,
    3 Jan 2014, 07:25 PM Reply Like
  • tonyc920
    , contributor
    Comments (103) | Send Message
     
    You're a brave man sir. I was at the playoff game against the Giants, Favre's last game as a Packer. That one was -3F at kickoff, -9 at the end. I was well prepared but what got me was my respiratory system. Breathing that super cold air for 4+ hours. It took me 2 weeks to get past that. Have fun. No beer sales in the stands. It freezes by the time you get past a couple swallows.
    3 Jan 2014, 07:43 PM Reply Like
  • Joshua Karstens
    , contributor
    Comments (12) | Send Message
     
    i'm with you tonyc920.....i need someone to explain this! if someone smart can explain what this means to say someone that owns 5000 in SIRI stock I would greatly appreciate it.
    4 Jan 2014, 08:32 AM Reply Like
  • Scott Sacknoff
    , contributor
    Comments (73) | Send Message
     
    Noticed here (and elsewhere on the net) a lot of confusion. Some clarification:

     

    Liberty did not offer $3.68, they offered a ratio of their share price that amounts to 39% of the new company. Were it a cash offer, the assumption would be correct but this is a stock offer. In other words, calls for the offer price raised to $4 or $4.50 is essentially irrelevant, the price offered will float depending on how Liberty's stock does. If Liberty's stock rises, so does the value offered for each Sirius share. The real question for the committee to determine is if the 39% is the right ratio. The value of the deal (to Sirius shareholders) goes up if...(1) Liberty's stock rises, and/or (2) the ratio is increased.

     

    It will take time (the weekend at least) for analysts to evaluate if 39% is the correct number or should it be higher. Computation of this will depend on the total value of Sirius to the new LMCA as a whole, factoring out what Liberty is contributing via the shares in Sirius they own as well as the other business lines, cash, assets, and debt they are bringing to the table.

     

    Imagine others (as well as myself) will be working on it this weekend...
    Personally, I'd have hoped for an initial offer level closer to the $4 January options expiration price but we will see what happens to the market as shorts close their out-of-money positions in the next few days.
    3 Jan 2014, 06:57 PM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8916) | Send Message
     
    Very nice explanation Scott. Lots of people will have questions in this that are answered by your post.

     

    I agree, prices near $4 would have been preferable, and this will take some time for people to work out and be reflected appropriately in the pricing.

     

    The ratio and thus share prices should eventually come into line. I'm expecting a slightly more favorable ratio and pricing near $4 per share on the offering (actually a range from $3.85 to $4.25).

     

    The nice thing here is this presents a reasonable bottom to downside risk unless LMCA starts to take a nose dive AND SIRI is not seen as capable of negotiating a better deal.
    3 Jan 2014, 07:11 PM Reply Like
  • Scott Sacknoff
    , contributor
    Comments (73) | Send Message
     
    Agree.

     

    FYI: Had offered to be part of the committee to review the deal but was informed by IR that they plan to just use the existing independent board members.
    3 Jan 2014, 07:39 PM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8916) | Send Message
     
    Will be interested in your thoughts going forward.
    3 Jan 2014, 07:40 PM Reply Like
  • TAS
    , contributor
    Comments (2429) | Send Message
     
    So long as Sirius begs me to return by offering six months for chump change soon after I drop the previous six month giveaway deal, I don't care who owns this radio menagerie.
    3 Jan 2014, 07:25 PM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8916) | Send Message
     
    Isn't it a pain in the butt to call, cancel, wait, and then resubscribe to save a few bucks? =/ I know it's possible but isn't the time and inconvenience involved in all this not worth the bit of savings when you really think about it?
    3 Jan 2014, 07:32 PM Reply Like
  • SXM_Permabull4Life
    , contributor
    Comments (325) | Send Message
     
    Liberty will need to make an offer that is acceptable to SIRI shareholders, right? I mean, if SIRI really appreciates over the next month or two, say after 2013 4q results are given, shareholders would be unlikely to accept a deal that results in their holdings being reduced in value -- At least I'd tend to think. I am hopeful there's room for negotiations. Wow do I have research to do and some big decisions to make regarding options -- Particularly what happens to Jan 2015 or 2016 options that I already own. Let the fun begin!
    3 Jan 2014, 07:27 PM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8916) | Send Message
     
    As Scott said above it's a ratio so the price is reflective of the ratio and LMCA's current share price at the time. The ratio may be adjusted in the future and thus the price equivalent on the transaction.

     

    It has to be acceptable to the committee, not to individual share holders.
    3 Jan 2014, 07:33 PM Reply Like
  • SXM_Permabull4Life
    , contributor
    Comments (325) | Send Message
     
    Stephen,

     

    I thought that from what I read, the transaction will need approval of the committee and the majority of the Sirius public shareholders?
    3 Jan 2014, 07:44 PM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8916) | Send Message
     
    "the terms of which would be approved by a special committee of independent directors of Sirius, and would also be subject to a majority of the minority vote of the Sirius public shareholders"

     

    yes, the committee will set the terms and holders will vote. In my opinion it is unlikely that many of the current holders will vote, and this will be decided by the larger institutional holders of the non LMCA portion of SIRI. The retail investor's opinion is unlikely to matter at all in this.
    3 Jan 2014, 07:48 PM Reply Like
  • SXM_Permabull4Life
    , contributor
    Comments (325) | Send Message
     
    Thanks Stephen, that's very unfortunate.
    3 Jan 2014, 07:50 PM Reply Like
  • SEE BELOW
    , contributor
    Comments (6) | Send Message
     
    How do you think all the various options for SIRI will be handled? Will they be traded in for new LMCA options at the appropriate conversion rate? Or will they all continuing trading until they expire?
    3 Jan 2014, 07:28 PM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8916) | Send Message
     
    I am not sure... will require some weekend research :)
    3 Jan 2014, 07:34 PM Reply Like
  • SEE BELOW
    , contributor
    Comments (6) | Send Message
     
    Thanks, Stephen. I guess I'm really asking if a current option owner's right to buy SIRI at a certain price in the future remains a pledge/contract through expiration even if the underlying stock is swapped for LMCA stock before expiration. Any thoughts are appreciated.
    3 Jan 2014, 07:49 PM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8916) | Send Message
     
    Remains an option at least as long as SIRI trades. I am unsure what happens if / when a deal is reached. This is something to consult a financial professional on.
    3 Jan 2014, 07:55 PM Reply Like
  • Scott Sacknoff
    , contributor
    Comments (73) | Send Message
     
    Options would continue to trade until they expire or when the deal is completed, whichever comes first. As this is a stock deal, typically, options are exchanged for new options at the conversion date per the merger agreement but that is subject to an announcement by the listing exchange.
    3 Jan 2014, 07:56 PM Reply Like
  • Scott Sacknoff
    , contributor
    Comments (73) | Send Message
     
    As if Sirius as in investment didn't drive us all crazy at times...just think of the fun over the coming month(s) as arbitrage experts enter the fray. I expect we'll see volitility and high trading volume. For those that don't follow, there are investors that specialize in pocketing the pennies to keep the deal in balance; ie. if Sirius goes up 10c and that translates into a $2 move in Liberty and Liberty only rises $1.50, they will buy LIberty and/or sell Sirius until the valuations balance to the final deal value.

     

    BTW....did anyone listen to the conference call? Was there a date provided for a hoped for closing?
    3 Jan 2014, 08:03 PM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8916) | Send Message
     
    I listened but was distracted at times. I believe 90 days was mentioned but that seems like a long time to me.

     

    Agree on the volume / volatility and the balancing act. Many people won't understand this activity and my suggestion is longs keep it simple and either hold if they are comfortable owning Liberty in the future, or exit and go elsewhere if they are not.

     

    I see the likelyhood of this happening in some form near 100%.
    3 Jan 2014, 08:08 PM Reply Like
  • tjpettit
    , contributor
    Comments (10) | Send Message
     
    Thanks Stephan, that seems to make sense.
    4 Jan 2014, 01:53 AM Reply Like
  • YourAverageJoe
    , contributor
    Comments (22) | Send Message
     
    I think this is a loud scream from the top of a mountain! Liberty is screaming out that they believe in sirius, hell they are going to buy it instead of spinning it off.......Hello? ...is anybody out there that can stop looking a tech numbers for a second.........ugg. Long live satellite radio! This is shaping up to be some fight between Google, Apple, and Liberty, I think this is great news. Don't worry you will get you $4 a share lol. The connected car is a new thing, in the future every car will be connected to the grid, it's still in it's infancy, the baby is still breast feeding.
    3 Jan 2014, 11:06 PM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8916) | Send Message
     
    Oh God please don't perpetuate this as some sort of battle between AAPL GOOG and LMCA... the hack writers that need to make up stories have already been spinning that one lately in the absence of news... :P At least for the time being that might be shelved as they'll have something else to write about.

     

    I agree LMCA sees a future here. For SIRI that will be as approximately 80% of LMCA for the foreseeable future.
    4 Jan 2014, 12:37 AM Reply Like
  • YourAverageJoe
    , contributor
    Comments (22) | Send Message
     
    Stephen I'm not a hack writer or even a writer at best, but don't think for even a second that this won't be a battle. There is way to much money sitting on the table. Your far to clinical about this. This is going to be the next giant industry.....Period! .... I personally follow you and appreciate your comments but please don't talk down to me... Please. Btw this average joe was smart enough to by 27,000 at .15 cents. I bought because I see a future were every transportation vehicle will be connected to the big grid in the sky. I remember when nobody had a cell phone, now everybody has one. The same will be for the auto / transportation industry. Your humble follower.
    4 Jan 2014, 01:01 AM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8916) | Send Message
     
    I wasn't referring to you with the hack comment. Just speaking in general about the sudden influx of Google / Siri articles. One guy fires off a blind shot article and 10 others copy him.... I agree there is future potential here in the connected vehicle space but I find it unlikely that this will be a fight between LMCA GOOG and AAPL. I see it as more likely that GOOG / LMCA works together in some way. LMCA is a delivery infrastructure and content play, while GOOG is a platform play. Not really a competition thing.
    4 Jan 2014, 02:22 AM Reply Like
  • User 12202341
    , contributor
    Comment (1) | Send Message
     
    What will be the price of the new class c stock
    4 Jan 2014, 01:27 AM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8916) | Send Message
     
    It's impossible to determine this.
    4 Jan 2014, 02:22 AM Reply Like
  • YourAverageJoe
    , contributor
    Comments (22) | Send Message
     
    If I'm doing the math right you'll get 1 share for every 13 shares of Sirius. The share price should be around $50 a share. Steven help me out am I close?
    4 Jan 2014, 01:38 AM Reply Like
  • Chancer
    , contributor
    Comments (3162) | Send Message
     
    Actually my guess using the value increase (as liberty claims) applied to my own cost guessed at $48.68, which makes it about $48-$50. But that is just a guess on my part.

     

    Who knows how the market will value this new Liberty non-voting share of the Liberty subsidiary known as SIRI. The price could soon fall by 50% if there is little investor interest in buying shares in a Liberty subsidiary. Liberty might invest little in developing SIRI and just use them to suck out the cash for other Liberty projects.
    4 Jan 2014, 01:08 PM Reply Like
  • tejunot
    , contributor
    Comments (3) | Send Message
     
    Will the share buyback be affected in the takeover?
    4 Jan 2014, 01:54 AM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8916) | Send Message
     
    In present form yes, but itmay shift into a return of capital through repurchase and shrink of outstanding shares in liberty media instead.
    4 Jan 2014, 02:24 AM Reply Like
  • User 12190021
    , contributor
    Comments (2) | Send Message
     
    Been holding on to this stock for 5 years , there stealing it ..... I new it would happen when Mel sold out ......
    4 Jan 2014, 01:55 AM Reply Like
  • JDoe20
    , contributor
    Comments (718) | Send Message
     
    I believe Liberty currently owns 52% of Sirius but the release says Sirius shareholders would get 39% of the company after transaction. 48 - 39% seams like a huge haircut we would all take. Anyone read this different?
    4 Jan 2014, 02:00 AM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8916) | Send Message
     
    You also get everything else LMCA owns. It's not a haircut.
    4 Jan 2014, 02:25 AM Reply Like
  • Chancer
    , contributor
    Comments (3162) | Send Message
     
    If you only own the (former) SIRI subsidiary, how do you own everything that Liberty owns? It seems to me that you only own the SIRI subsidiary. The only investors who will be interested in the C shares will be those who want to invest in SIRI only, which is why I do not see the investor interest, liquidity, and marketability to be worth much, if an investor could just by LMCA shares and own both Liberty and Sirius.
    4 Jan 2014, 03:35 PM Reply Like
  • JDoe20
    , contributor
    Comments (718) | Send Message
     
    Stephen, the release says a 100% subsidiary company. To me, a sub does not own the parent - the parent owns the sub. Are you sure the new stock class C would be part owners of all the parent company and not just the sub? Thanks!
    5 Jan 2014, 01:42 AM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8916) | Send Message
     
    I am unsure. It appears C may be just SIRI with C being spun out of A and B. Need to see once this is clarified. Everyone is all over the place with this.
    5 Jan 2014, 04:51 PM Reply Like
  • frank_de_tank
    , contributor
    Comments (46) | Send Message
     
    SF,

     

    You are getting there. LMCA (and LMCB) will exist. The 13d clarify's it. The SIRI holdings would be decoupled from LMCA (and LMCB). Not gonna 'track' like some think. LM wants the entire asset under HIS roof to use it all as collateral. The debt ratios will march on up to 4x + to help LMCA maintain X% in the resulting charter/twc company. Assuming the deal occurs (that would be a twist if it did not).

     

    LMCC will contain ALL of SIRI from both sides. LMCA and LMCB will have ALL the votes. B @ 10x and A @ 1x. LMCB, really controls the boat (96% insiders: Malone, friends, family and some institutions). LMCB has roughly 43% of the voting power in all decisions, leaving leaving 57% with LMCA. Malone, friends and family also have LMCA shares.

     

    You have the ratio right, 3.68 is just a number as of the close Friday. The 'number' will be different based on the current price of LMCA. Where SIRI trades at the same moment, it is the premium or the discount. There is no hard floor or ceiling. Since, as of now, SIRI helps drive LMCA there will be a theoretical floor. If you are a bull, you are still rooting for a good Q.

     

    This ALL should be looked at from the other side of the fence and its messy over there.

     

    GL
    5 Jan 2014, 07:31 PM Reply Like
  • vinci666
    , contributor
    Comments (52) | Send Message
     
    I'm not to keen in getting a non voting stock. sounds worthless to greenies like myself
    7 Jan 2014, 12:12 PM Reply Like
  • JDoe20
    , contributor
    Comments (718) | Send Message
     
    I believe Liberty owns 52% of SIRI now but after the transactions Sirius shareholder "would own 39% of the company". Sounds like a real haircut 48 - 38% overnight. Anyone else have a different take?
    4 Jan 2014, 08:30 AM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8916) | Send Message
     
    Was my answer above not sufficient?
    4 Jan 2014, 08:46 AM Reply Like
  • CAPTAIN0924
    , contributor
    Comment (1) | Send Message
     
    100 shares @.076 = 7.6 shares x 2 ( for 1 ) = 15.2 ?
    4 Jan 2014, 08:32 AM Reply Like
  • OCTO
    , contributor
    Comments (53) | Send Message
     
    Its smell very fishy. Manipulation and so on. What about buy back billions of shares ? Smoke and mirrors that all We the chickens go to roast ! This guys are not thinking only their money, even dishonest like this deal look like.
    4 Jan 2014, 08:34 AM Reply Like
  • Thurston Howell
    , contributor
    Comments (15) | Send Message
     
    $3.68 seems pretty low but since they own 52% of Sirius couldn't they offer a penny per share then put it to a vote and Liberty would win.

     

    Can someone expain this (Steve?)
    4 Jan 2014, 08:34 AM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8916) | Send Message
     
    No they can not do that. It wouldn't be accepted.
    4 Jan 2014, 08:46 AM Reply Like
  • valueinvestor...///
    , contributor
    Comments (5) | Send Message
     
    No, a majority of the minority vote is required to approve the buyout. There are laws to protect the interests of the minority shareholders in cases where a majority shareholder wishes to buy out the minority shareholder.
    5 Jan 2014, 01:55 AM Reply Like
  • MMC4
    , contributor
    Comment (1) | Send Message
     
    on the conference call It sounded like they were prepared for a little negotiation on the price.
    4 Jan 2014, 08:35 AM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8916) | Send Message
     
    Yes that's a reasonable assumption.
    4 Jan 2014, 08:47 AM Reply Like
  • 7761501
    , contributor
    Comments (20) | Send Message
     
    What would the new c class shares be valued at per share?
    4 Jan 2014, 08:35 AM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8916) | Send Message
     
    No way to tell this yet.
    4 Jan 2014, 08:47 AM Reply Like
  • yna1446
    , contributor
    Comment (1) | Send Message
     
    so does that mean that 1 siri = .076 lmca? at current value ($145) that would make 1 siri worth 145x.076= $11.02 /3 (for 2:1 dilution to current lcma/b holders) = $3.67. is that how the math is supposed to work?
    4 Jan 2014, 08:36 AM Reply Like
  • Garbaby
    , contributor
    Comments (4) | Send Message
     
    What happens to options?
    4 Jan 2014, 08:36 AM Reply Like
  • chettilu
    , contributor
    Comment (1) | Send Message
     
    Stephan where have you been I miss all your great insight.
    4 Jan 2014, 08:39 AM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8916) | Send Message
     
    Same questions posted every few hours.... I'm giving up answering them repeatedly :P
    4 Jan 2014, 08:48 AM Reply Like
  • JDoe20
    , contributor
    Comments (718) | Send Message
     
    Hours of delays in posting comments result in multiple Q's. In addition, I believe multiple email broadcasts may result in same Q to new email which may posts to old comment string. This is what happened to me.
    5 Jan 2014, 01:44 AM Reply Like
  • RAVEN
    , contributor
    Comments (53) | Send Message
     
    Tweets:
    Mario Gabelli ‏
    @MarioGabelli 47m

     

    John Malone -- Deals, Deals and more ...liberty media (LMCA)starts with proposal to buy in minority of Sirius (SIRI) ..lining up for TWC?
    4 Jan 2014, 11:41 AM Reply Like
  • New Low Observer
    , contributor
    Comments (2149) | Send Message
     
    With SIRI possibly getting acquired, who is next for being added to Nasdaq 100? If the deal does go through then these are the top picks:

     

    GRPN
    MRVL
    EA
    FSLR
    ASML
    ARMH
    4 Jan 2014, 12:21 PM Reply Like
  • Chancer
    , contributor
    Comments (3162) | Send Message
     
    Since SIRI shareholders obviously do not like this lowball offer of Malone, what is the chance that one or more other buyers (e.g. Google, Apple, Nokia) or a raider (Icahn) makes an offer over $5 for all cash or shares in their company. Then SIRI shareholders vote for that instead of the Liberty proposal. How does Malone block that other than increasing the price of his offer?
    4 Jan 2014, 03:39 PM Reply Like
  • RichAidan
    , contributor
    Comments (5) | Send Message
     
    thats probably unlikely because liberty media has majority control over sirius xm
    5 Jan 2014, 01:17 AM Reply Like
  • RichAidan
    , contributor
    Comments (5) | Send Message
     
    would the new liberty media c shares have a divident
    5 Jan 2014, 01:27 AM Reply Like
  • valueinvestor...///
    , contributor
    Comments (5) | Send Message
     
    Unlikely given that Lmca owns majority of Sirius and another company would not want to own the minority stake without at least having a partnership with Sirius, and Malone doesn't seem to want to play that game. He just wants Siri to make Libertys cash flow statement look better so he can finance charters buyout of time warner cable, which is 3 times larger than charter cable.

     

    However, even though another company is unlikely to buy a minority stake, an arbitrageur may be interested in buying a big chunk of the minority shares knowing full well that the 3.68 offer is too low and that in the end, Malone will end up paying a much higher price if the minority shareholders hold out. But this will only happen if the minority shareholders care, otherwise the deal will go through not more than $4 or around wherever Siri closes on Monday. Most of the institutional shareholders really wouldn't want to mess around with it because Siri is a tiny fraction of their portfolio. So the best case scenario for Siri shareholders is to have someone like Carl Icahn or bill ackman step in and cause some waves.
    5 Jan 2014, 12:21 PM Reply Like
  • Chancer
    , contributor
    Comments (3162) | Send Message
     
    After this deal is all done, if a new investor wants to invest in ALL of Liberty what does he buy?

     

    Does he buy this new C share or some other Liberty shares?

     

    There must be other voting shares that Malone uses to control Liberty.
    5 Jan 2014, 02:32 PM Reply Like
  • psychological-dividends
    , contributor
    Comments (811) | Send Message
     
    Malone is not going to give you a steal I guess.
    5 Jan 2014, 07:54 PM Reply Like
  • cmcliamfinnoliver75
    , contributor
    Comments (23) | Send Message
     
    JM and gang have orchestrated this coup from the git go....wake up!
    cash cow to assist in JMs desire to have a cable mecca.....

     

    from 4.18 to 3.30 after great Q3 ...mms were at hand with JMs direction and now wants to STEAL
    this iconic company for his toy shelf...left alone,siri would reach $5 plus over next 24 months.

     

    then the great siriusxm fades....JM and the gang get ego boosts......and so the saga goes.

     

    bottom line is to flood the board with disapproval..............
    5 Jan 2014, 09:45 PM Reply Like
  • 1-60 fast
    , contributor
    Comments (6) | Send Message
     
    Looks like the Lawyers will smell blood and circle. The definition of fair value will be hard to asses when it applies to Sirius...
    5 Jan 2014, 10:56 PM Reply Like
  • sikkabooyah
    , contributor
    Comments (473) | Send Message
     
    This whole Sirius-Liberty Media business reminds me of a proposition on an Oklahoma voting ballot.

     

    No matter how many times you read and re-read the proposition, the "yes" or "no" vote you ended up making turned out later to have the opposite effect of your intended outcome.

     

    Moral: It's not necessary to lie to investors; simply confuse them, and let nature take its course.
    7 Jan 2014, 09:51 AM Reply Like
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