Liberty Media Would Love To Own SiriusXM But Wont Chase It

greg-maffei-of-liberty-mediaThis week the subject of Liberty Media buying out SiriusXM raised itself again when Greg Maffei stated, “Sirius holders wish they took the deal”, referring to a proposed deal at the beginning of 2014 that had Liberty effectively paying about $3.86 per share to get the half of the company it does not own.  Since that offer SiriusXM has not seen that type of stock price, and the equity currently is trading in the $3.20’s.

The initial deal made a great deal of sense but had same passionate opponents.  In most cases, those oppsed to the deal did not really understand the workings of it.  Ultimately Liberty withdrew the offer and SiriusXM has floundered ever since.  SiriusXM brings in a ton of revenue and would be a great fit as a wholly owned entity in the Liberty Media franchise.  I have been invested in both Liberty Media and SiriusXM for quite some time.

Liberty has expressed that it will not chase a deal, but does not hesitate to point out the some great tax advantages could be realized if a deal were to happen.  The big issue here is that a deal only makes sense at certain prices.  Meanwhile, Liberty does not really have to move quickly because it already owns over 50% of SiriusXM and its stake keeps going up due to SiriusXM buying back shares on the open market.  Simply stated, Liberty can afford to be patient and does not need to “over-pay” for a company it already controls.

In my opinion, if another buyout offer surfaces, SiriusXM’s board and minority investors will give it serious consideration.   While an offer will not deliver a massive premium, the ultimate solution may allow for this equity to grow some legs and appreciate.

Seven Diversity Channels Announced for Sirius XM

The merger between Sirius Satellite Radio and XM Satellite Radio was approved three years ago. One condition of the merger was a 4% set-aside of spectrum for diverse programming not owned or controlled by Sirius XM. During the process several companies and organizations came forward with the desire… → Read More

XM Satellite Radio Inc. Merges Into Sirius XM Satellite Radio

In an 8k filed today after the close, it was officially announced that XM Satellite Radio has merged into Sirius XM Satellite Radio effective January 12, 2011. The move, which was not unanticipated, is a natural byproduct of the merger between Sirius and XM years ago as well… → Read More

Sirius XM Does Some Housekeeping

The last couple of quarters for Sirius XM have bolstered the confidence of many investors, but as always there is still some housekeeping to do, and the company performance needs to be proofed. The company accomplished a little bit of housekeeping last week by consolidating two of their… → Read More

The All New is up and Running

Well it’s about time. Sirius and XM have finally launched a website on their new domain name, which they recently acquired on September 3, 2008. As of today it’s still nothing special, just a simple landing page that directs visitors to each of the two services main… → Read More

AlphaStar Requests Meeting With Sirius XM Radio

In a filing that was published on the FCC website, AlphaStar has requested a meeting with Sirius XM Radio to discuss the possibility of AlphaStar being an entity that would provide content on the merged company platform as outlined in the FCC ruling. AlphaStar stressed that they have… → Read More

Opinion: Sirius XM Merger Appeal

Having spoken with Michael Hartleib, I will not write anything regarding our conversation as he has already offered his own opinion in the original story, but I would like to offer my own opinion on the case. One of the questions I posed to him was; “Why did… → Read More

The Best Of Both Worlds

A few days ago, I touched on the fact that the much touted 4oo million dollars in synergies was a low ball figure. In an interview on CNBC today, Citi analyst Tony Wible agreed with me that the estimates are in fact conservative. You may not have noticed… → Read More

Sirius XM Radio Investors Singing Blues

The merger is finally here. After a long and drawn out regulatory process, the birth of Sirius XM Radio has many investors singing the blues. The question is how long the street will stay on the blues channel, and will the next channel be more upbeat? With the… → Read More

Sirius And XM Complete Merger

The merger between Sirius and XM is no longer “proposed”. It is reality. As anticipated, Sirius and XM consummated their deal prior to the market opening today, and the company has a new name… Sirius XM Radio Inc. Among the announcements this morning were: Combined Company Has Over… → Read More