SiriusXM (NASDAQ:SIRI)announced today that the company is authorizing another $2 Billion in share buybacks. As part of the program, Liberty Media (NASDAQ:LMCA) will participate by selling $500 million of its stake. The sale by Liberty Media will still leave Liberty firmly in control of the satellite radio provider with a 52% stake in SiriusXM. Added to the previously approved $2 billion, the total for share buybacks will no\w stand at $4 billion.
Since the first share buyback announcement, SiriusXM has spent $1.6 billion and repurchased 476,545,601 shares of its stock. The Liberty shares will be bought in installments with shares bought in November 2013, January 2014 and April 2014. The company stated that the purchases may be accelerated under certain circumstances. If we use a $4 average price, the Liberty transaction alone will cover 125 million shares.
SiriusXM is up in pre-market on the news. The company will likely conduct its Q3 conference call in the next 3 weeks. It is anticipated that the company will report very good numbers across the board. Between a new share buyback program and a good Q3, SiriusXM can likely challenge price points above $4 per share in the near term.