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Sirius XM resumes trading, jumps above Liberty's offer price

  • After coming off a halt, Sirius XM (SIRI) is trading at $3.75 after hours in the wake of Liberty Media's (LMCA) offer to assume full ownership of the satellite radio owner.
  • That represents a 5% gain from Sirius' closing price of $3.57, and is 1.9% above the $3.68/share buyout price implied by Liberty's all-stock offer. Some Sirius shareholders might be betting on a better offer arriving.
  • Liberty shares are up 0.5% AH.
Comments (37)
  • bobsar
    , contributor
    Comments (220) | Send Message
     
    $4.50 ?
    3 Jan, 06:31 PM Reply Like
  • H50
    , contributor
    Comments (43) | Send Message
     
    at least 4.50.....special committee should ask for 5
    3 Jan, 06:33 PM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8531) | Send Message
     
    That pricing is highly unlikely, though I would certainly jump for joy if such a pricing were agreed upon. It is more likely we find an offer agreed upon at or near $4 per share, give or take $0.25. 2% to 15% above the current offer. I don't see 22% to 36% premium being accepted by LMCA since this is not a buy out offer to gain control but rather an equity swap with no competing bidders and zero chance for one.
    3 Jan, 06:59 PM Reply Like
  • WhatdoIknow1
    , contributor
    Comments (661) | Send Message
     
    Opening offers are often less than the final negotiated price accepted. This will go higher as it should. They're buying a growing monopoly that can only get better with age. What's really nice is the floor that's now been put on the price. Even if the market goes sour with a pull back Siri will hold steady. The real question involves the intended buybacks which will most likely be put on hold until a final decision is reached.

     

    Long SIRI
    3 Jan, 10:36 PM Reply Like
  • Doug Dallam
    , contributor
    Comments (8250) | Send Message
     
    "Sirius XM resumes trading, jumps above Liberty's offer price"

     

    LOL - of course it does. Eat a poison pill Liberty.
    3 Jan, 06:37 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5615) | Send Message
     
    Wait a minute. (LMCA) spun off (SIRI) years ago. Now it wants (SIRI) back?
    3 Jan, 07:06 PM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8531) | Send Message
     
    LMCA never spun off SIRI. LMCA received a 40% stake and since purchased up to 52%. Other than selling a small amount back to SIRI for cash it has not since gone under control or spun out, ever.
    3 Jan, 07:12 PM Reply Like
  • draland
    , contributor
    Comments (363) | Send Message
     
    Glad to read a comment from you since you've 'departed' to join the work force as so many of us must. Again what I'm seeing here is Malone and Co. are very busily involved in bilking us commoners out of our piddled gains. Retrospectively, if this deal goes through then it made ZERO sense whatsoever to hold after last years $4.18 peak !?!? What possibly would we gain from a 2:1 stock trade when so many lofty analyst targets had us very well OVER $5, and as always I and so many other long-time holders feel raped with this equity ; Jim Cramer said it once so very long ago (and I don't feel like it has ever changed) that 'they'(whomever that is/was) were sitting on our money like LEAD WEIGHT, and honestly after 8-years in SIRI/SXM I have to agree that my chest has ALWAYS felt that onerous suppression and we never have flown like we could've................. only consolation besides my HARD-EARNED gains is that this cruel saga will finally end, and my $$$ will be free to go elsewhere................

     

    Nuff Said
    3 Jan, 07:30 PM Reply Like
  • countr307
    , contributor
    Comments (27) | Send Message
     
    May be we should all ask the Pope to intercede against this bilker for $6 ..
    3 Jan, 07:47 PM Reply Like
  • mjfire
    , contributor
    Comments (18) | Send Message
     
    What happens to Siri option contracts under this proposal?
    3 Jan, 07:15 PM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8531) | Send Message
     
    I am unsure. Need to do some research on this. In the meantime I will not be going long any longer dated options as I am not confident in what may happen with time premiums if the deal goes through before expiration. Complicates matters.

     

    It is unlikely a deal would solidify before January 2014 expiration.
    3 Jan, 07:19 PM Reply Like
  • Ol Blue Eyes
    , contributor
    Comments (1006) | Send Message
     
    Why does Liberty have to increase it $3.68 valuation at all? Since Liberty controls Sirius, why can't Liberty just have Sirius ratify the $3.68? Where is the leverage for Sirius shareholders?
    3 Jan, 07:55 PM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8531) | Send Message
     
    LMCA can't force holders into an equity swap or cash offer unless they wish to invite lawsuits. They have to negotiate in good faith... (which doesn't mean they have to offer $5 a share, either).
    3 Jan, 07:57 PM Reply Like
  • vaporgold
    , contributor
    Comments (54) | Send Message
     
    what about other bidders?
    3 Jan, 08:25 PM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8531) | Send Message
     
    Zero chance.
    3 Jan, 08:26 PM Reply Like
  • draland
    , contributor
    Comments (363) | Send Message
     
    Not really Stephen, it would be a hell of a catch for up and coming Google entry into the 'connected-vehicle' market especially with the recent Agero acquisition, also and a nice way to stick-it to Malicious-Malone from the much younger in-tune crowd at Google-Nation !
    They can afford it.......................
    3 Jan, 08:48 PM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8531) | Send Message
     
    Google wasn't going to buy SIRI, no matter how many writers decided it sounded like good material for click bait... especially recently. SIRI has been "off the market," essentially, since LMCA's 40% stake saved it from bankruptcy in 2009. The takeover / buyout line of thinking has been a huge waste of time for the last 5 years.
    3 Jan, 09:04 PM Reply Like
  • draland
    , contributor
    Comments (363) | Send Message
     
    There is ZERO incentive here to have held, on r- reading the offer it appears like we are being offered 0.076 of a new 'C' share................T... not even one-tenth of a share for each of my shares ?!!
    Sounds like a 'rip-off' to me.................This has been one hell of a haul with this equity, so frustrating!!
    3 Jan, 08:41 PM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8531) | Send Message
     
    It really shouldn't be frustrating. It's an equity swap for a stake in LMCA. This is not a buyout offer or hostile move. Anyways... I think this will be the last time I post this. Might be best if people are allowed to stamp their feet and throw fits for a few days in protest for whatever reason... and blame big bad LMCA for God knows what :) lol
    3 Jan, 08:46 PM Reply Like
  • frank_de_tank
    , contributor
    Comments (46) | Send Message
     
    SF,

     

    It's for a stake in LMCC. Siri shareholder will not get any LMCA unless the buy some. Siri holders will get 39% of the new subsidiary. Current LM holders (a and b class shares) will get the remainder. None of the new c class share will have any voting rights.
    3 Jan, 09:20 PM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8531) | Send Message
     
    It's an equity swap for a stake in Liberty then. I simply have a habit of referring to Liberty as its current ticker symbol.

     

    Retail holders have little to no impact with votes anyways. Most don't even bother. Shouldn't matter. Retail doesn't have any sway with SIRI as is.
    3 Jan, 10:26 PM Reply Like
  • wisetruth
    , contributor
    Comments (32) | Send Message
     
    Don't really care about the symbol - what impact will this have on my share value - and will they be capable of appreciating at the same rate.
    3 Jan, 09:04 PM Reply Like
  • JDoe20
    , contributor
    Comments (451) | Send Message
     
    This deal takes public shares from 48% ownership to 39% ownership. If I understand right this would just be highway robbery. How could 9% of our ownership be, for lack of other term, stolen from us and given to Liberty shareholders? Do I have something wrong here?
    4 Jan, 01:30 AM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8531) | Send Message
     
    You receive ownership of other LMCA owned assets as well. Nothing is stolen.
    4 Jan, 02:28 AM Reply Like
  • howell172
    , contributor
    Comment (1) | Send Message
     
    So what does this mean? Sell it, or hold onto it. I bought 1000 shares at .40 a share when it was in the pits.
    4 Jan, 01:52 AM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8531) | Send Message
     
    If you believe Liberty will continue to perform well with SIRI wholly owned, then continue to hold. If you believe Liberty will not perform well, sell.
    4 Jan, 02:29 AM Reply Like
  • tejunot
    , contributor
    Comments (3) | Send Message
     
    So if there is no bidding war, who would challlenge the offer proposed? Who in the special committee would negotiate the offer to a higher premium?
    4 Jan, 01:54 AM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8531) | Send Message
     
    Non liberty owners will likely challenge fair value and what they feel is an accetable ratio at present. Since it is an equity swap and not a buyout do not expect that a significant premium will be sought (IE: do not expect 1 year price targets to be pursued as fair current value). $4 per share is not out of the question... $5 per share is.
    4 Jan, 02:32 AM Reply Like
  • tagmeto
    , contributor
    Comments (7) | Send Message
     
    Small time trader, retired, hobbie, stocs. Following siri 2 yrs. Also investor in silver
    4 Jan, 01:55 AM Reply Like
  • Dave's
    , contributor
    Comments (2) | Send Message
     
    I know nothing about this offer, I just sold them right now
    4 Jan, 01:55 AM Reply Like
  • tagmeto
    , contributor
    Comments (7) | Send Message
     
    Sorry liberty, been here to long
    4 Jan, 02:00 AM Reply Like
  • Garbaby
    , contributor
    Comments (4) | Send Message
     
    Does anyone know what happens with options?
    4 Jan, 02:00 AM Reply Like
  • Hoganc
    , contributor
    Comments (6) | Send Message
     
    I tend to agree with Steven F's comments. This will put me where I thought I would eventually be without the hassle of sells and buys. 4.25 makes me happy.
    4 Jan, 08:21 AM Reply Like
  • Hoganc
    , contributor
    Comments (6) | Send Message
     
    I expect at least $4.25 in equivalent value for my shares.
    4 Jan, 08:30 AM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8531) | Send Message
     
    The further your expectations are from a value of $3.68 the more unlikely they are to come to fruition. Something to keep in mind. I'd "expect" $3.68 and allow for being happy with more vs. expecting too much and being disappointed with less.
    4 Jan, 08:50 AM Reply Like
  • Jerry7764
    , contributor
    Comments (15) | Send Message
     
    I have been here forever.
    I own 140.000 shares, if they stay at $ 4.00 per share valuation, I will stay with them.
    If they get to a valuation of $ 4.25 or higher I will sell and move on.
    I wish this was not taking place, I wanted this for my grandchildren.
    5 Jan, 03:16 AM Reply Like
  • 192492
    , contributor
    Comments (9) | Send Message
     
    Must shares be tendered. 15,000. Or can they be held until all is clear. Sounds like Liberty wants Siri on the cheap
    5 Jan, 03:17 PM Reply Like
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