SiriusXM After Hours News
SiriusXM hid the fact that it lost 20,000 subscribers in Q4 pretty well by showing that they made their full year subscriber guidance. The company finished Q3 2013 with 25.58 million subscribers, and finished the year with 25.56 million subscribers. Simply stated, they lost at least 20,000 subs in the most recent quarter. This is something I had cautioned investors about and is tied to the mechanics of the new GM deal.
The company did outline some 2014 guidance, which may be taken by some to be modest, but remember, this is the beginning of the year. 2014 guidance is as follows:
- Net subscriber additions of 1.25 million
- Free Cash Flow approaching $1.1 billion
- Revenue of over $4.0 billion
- Adjusted EBITDA of about $1.38 billion
In additional news, Sirius XM announced a special committee to review the Liberty media bid The committee is made up of independent directors Eddy Hartenstein, James Holden, and Joan Amble. Hartenstein, the former CEO of DirecTV will chair the committee.
Please answer a few questions for the novice. I am new subscriber and I thank you in advance for all of your insight on this site and SA.
If I hold onto my shares, is the floor price 3.68 if an agreement is made? Ideally a higher price closer to 4 or slightly above is agreed upon but if 3.68 is the floor, I would prefer to hold and “gamble” on higher price. Any thoughts?
Would you recommend selling some shares and buying LMCA at the current price?
If the deal is refused initially, would you look at that as good news for the long investor? short term? long term?
If the deal does go through, what do you project LMCA and LMCC shares to trade like?
I know my questions are highly contingent upon personal preference but just looking for your thoughts and guidance.
Thanks again.
It is a ratio, so $3.68 is not really the floor. By example, the current offer has the price at $3.53.
If the offer is rejected I would see that as a positive