Liberty Media Status Report
I wanted members to see this first. I am working on an article that will either go on SiriusBuzz or Seeking Alpha, but you are members, so you get first look. Note that Liberty is at 49.6% ownership. Also note that their average price is $2.26 per share on the common stock. Remember, they want that money back!
The total is now approaching $1.4 billion. The fully diluted share count sits at over 7 billion. I can see Liberty enacting a share buyback of at least 352 million shares (THAT LIBERTY WILL NOT PARTICIPATE IN) in order to get stake to 54% or 55%. This will insulate Liberty from getting taken out of a majority position from dilution. After that, anticipate that Liberty will want a share buyback of twice the number of shares as they buy in common. That would be about 1.3 billion shares. Liberty would participate in that in order to get back its $1.5 billion invested into common buys. I wanted you members to have this first. Spread the word, I want SiriusBuzz Premium to be a success!
And all this means Siri is about to run up and possibly fast….is that right or wrong??
Albert….
The trend was down. Liberty is propping the price. They bought more yesterday, and likely are near the limit today. Once liberty steps out, the equity looks like it wants to retrace again
Is this news good for current SIRI shareholders ? What do you expect the price of each share will go to over the next two weeks?
I look at the overall picture as fine. I did remove an element of risk a couple of months ago by selling half my Siri and buying liberty. This is one of the few trades I have done on Siri in the last several years. I tend not to trade it. I sold most in the $7’s and held some that I pretty much sit on.
Right now I would say $2.30s are in the cards with a possible test at $2.27. That is short term. As soon as guidance is releasedfor next year this equity can appreciate. We also need to see liberty resolution.
Thank you for answering my questions Spencer. Since the developements between Liberty and Sirius are so complicated, I am glad that I decided to become a member of “Premium”. By reading your comments on a daily basis, I can better understand what is really going on. I believe that I have made a good investment by becoming a member. Thanks again.
No problem at all. If you ask a question in a comment and I do not get back fairly quickly, you can always send me an email.
[email protected]
Now that’s what I needed to know so I know what kind of trading plan to keep in mind if it does this as you mention…Thanks
No problem Albert. Have a nice evening. The email above applies to you as well. I will always try to be responsive, but sometimes email is easier