Liberty Sirius XM: A Free Cash Flow Growth Engine
Summary
- Liberty Sirius XM (LSXMA; LSXMB, LSXMK) is expected to streamline its holding structure, providing an opportunity to acquire a growing and stable business at a c16% look-through Free Cash Flow yield.
- The separation of Live Nation from LSXM will help reduce the current discount to Net Book Value and facilitate future corporate actions.
- The main asset of LSXM is Sirius XM, a stable subscription business trading at a generous free cash flow yield, which will be used for buybacks and provide added return while waiting for the discount to close.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of LSXMA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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