Liberty Media stock was up as much as 11% in Tuesday’s early deals as the conglomerate launched a proposal to clean up the ownership with SiriusXM.
Liberty SiriusXM, a vehicle holding Liberty’s 38% stake in SiriusXM, would be combined with the remainder of the SiriusXM equity into a new unit.
SiriusXM is said to be considering the proposal.
Holders of the Liberty stock will own around 84% of the combined entity, while the minority Sirius holders will hold the equivalent of 16%.
“Liberty’s proposal rationalizes the dual corporate structure between LSXM and SiriusXM and provides value to all shareholders with a more flexible and attractive currency in New SiriusXM,” Greg Maffei, Liberty chief executive said in a statement.
“SiriusXM minority shareholders will also benefit from enhanced trading dynamics, including increased liquidity and likelihood of future index inclusion.
“We are excited about the prospects for New SiriusXM and look forward to remaining meaningfully invested in the business.
“This simplified structure will also allow management to better focus on its strategic priorities, drive the company’s continued growth and simplify the investor relations story."
In New York, Liberty stock was up 7.78% shortly after the opening bell trading at $24.35 while SiriusXM was down 9.6%, at $3.63 per share.