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Investors enthusiastic over Sirius XM Radio

  • Shares of Sirius XM Radio (SIRI) race 7.8% higher to $3.85 in premarket trading following an offer late Friday from Liberty Media (LMCA) to take over the company in a deal which values the company at $3.68 per share.
  • In a conference call with analysts, execs said if the deal is completed it would allow Liberty to start buying back shares at an increased pace.
Comments (8)
  • joeait
    , contributor
    Comments (10) | Send Message
     
    It is a sellout for the siri stockholders. It stinks. If it goes through as is , screw Malone. Time to quit Sirius and get pandora
    6 Jan, 11:04 AM Reply Like
  • joeait
    , contributor
    Comments (10) | Send Message
     
    It is a sellout for siri shareholders. It stinks. Screw Malone. If it goes through, I go to Pandora. I hope all the shareholders do the same.
    6 Jan, 11:06 AM Reply Like
  • WhatdoIknow1
    , contributor
    Comments (661) | Send Message
     
    People aren't enthusiastically embracing this deal. It's too ridiculous of an evaluation for a growing monopoly with 700million in free cash flow whose purported threats from internet connectivity have yet to materialize. This company is worth more period. The reason the stock is soaring above the original offer is because the market realizes this.

     

    Also, if this deal goes through you can forget about buybacks as all free cash will be used by Liberty in their pursuit of Time Warner. There will be no magic beans and you will loose your cow.

     

    The market is right in thinking this deal will get better.

     

    Holding SIRI
    6 Jan, 11:11 AM Reply Like
  • beanboy62
    , contributor
    Comments (55) | Send Message
     
    //////////////////////...
    In a conference call with analysts, execs said if the deal is completed it would allow Liberty to start buying back shares at an increased pace.
    ??????????????????????...
    Big snafu in your reporting. Actually Liberty is suspending its sale of stock and will be doing a tax free stock swap.
    ----------------------...

     

    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.
    6 Jan, 11:11 AM Reply Like
  • countr307
    , contributor
    Comments (27) | Send Message
     
    Malone is playing dirty. I wonder whose idea to halt share trading. We need a white knight.
    6 Jan, 11:42 AM Reply Like
  • User 19236201
    , contributor
    Comments (2) | Send Message
     
    "Investors enthusiastic over SirusXM Radio"

     

    This six figure shareholder is anything but enthusiastic over Liberty's offer.
    6 Jan, 12:13 PM Reply Like
  • JDoe20
    , contributor
    Comments (451) | Send Message
     
    How do you value a stock if it hasn't traded 1 day? To my knowledge there are no other shares with zero voting rights and are funds or big money managers going to buy in with zero say on future?
    The only thing keeping this current bid from being forced on us is a VOTE by the minority owners. Will the C shares drop 10, 20, 30% because of the no vote?
    6 Jan, 12:13 PM Reply Like
  • bboggs
    , contributor
    Comments (42) | Send Message
     
    Why does LMCA need to implement a stock exchange before "buying back shares at an increased pace"? Couldn't they continue to buy shares on the open market and do the required SEC disclosures?
    7 Jan, 09:33 PM Reply Like
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